Common law, RRSP, and Credit questions

[mattylance]

Background
-I am a Canadian citizen working for a US company. I am getting transferred to the company HQ in the US so I assume they will be getting me an L1 visa.
-Job should last a minimum of 3 to 5 years
-I have a common law girlfriend who is a law clerk (2 year college diploma)


1) We have about $10k in RRSP's. What is the cheapest way to get a hold of that money?

2) I read that the US doesn't recognize common law, is there anything my girlfriend can do to be able to legally work in the US or do we have to wait until marriage?

3) We don't own a home in Canada but would like to buy a home and rent/lease a car. How do we do this if we have no credit in the US? From the forum it talks about how difficult it is, but I can't imagine my company moving people and them not having the ability to buy a car.

Any help is appreciated!

Thanks
Matt

[Reba]

The cheapest way to get hold of your RRSP money is to wait until retirement age. If you take money out of it now, you'll be heavily taxed, and depending *how* you do it, may also be required to pay it back to yourself!

No, the US does not have common-law, so your girlfriend will not be eligible for a derivative L visa. If she is otherwise qualified for some sort of work visa (TN1) then she can attempt to find a job with a company who will sponsor it. Or you can get married now and she can get derivative status off your L. I'm not sure if she can work though on a derivative visa.

Maybe your company has a relocation plan that will help you buy a home and lease a car. Some do.

[Steven]

1) There is another recent thread on here about the RRSP situation. Basically under the 2008 tax treaty you don't have to do anything. It only gets complicated if you move your tax home to the US and want to carry on contributing to your RRSP (the simple solution is to open up an IRA instead). If you do move your tax home to the US you have to declare RRSPs to the IRS on Form 8891 every year when you file your tax return.

2) Pretty much you have to get married. She can enter as B-2 using the "co-habiting partners" exemption but she will not be able to work. Usually that doesn't matter much as spouses in non-immigrant categories usually cannot work anyway, however L-1 is one of the rare exceptions, because if you were married she could work as an L-2 dependent.

3) It's not going to be quick I'm afraid especially with the credit crunch. You can get a secured credit card from most US banks (i.e. you make a deposit with them which secures the card), this helps you build up a credit history quickly, or you can transfer AMEX accounts to the US.

Buy a cheap car with cash I guess is the simplest answer, plenty of them about at the moment.

[kaktus]

To add to Steve's comments, on the RRSP and home/car front:

Yes, on RRSP (depending if you really need it
then your choice about cashing in but being taxed), leave it, but look into having access to it (ie inquiring about it, making periodic switches etc) while in the US thru your dealer (ie if bank or brokerage firm, contact them and ask if they're definitely registered to deal with you in the state you will be in). Otherwise, switch your dealer (or bank), before you move down.

Banking: advise that you retain your current Cdn bank acct (ie say chequing) with minimal (<$500). That way, keep your client card, and allows you access, for whatever reason, if back in Canada temporarily. If need be, allows some payoff of your Cdn credit card during initial transition etc.

Home/car: Well, simply open a bank acct in US, or (like RBC which has RBC Bank USA-Centura) transfer most funds to US account upon moving.
There is nothing preventing you to buy a car, I did, and on loan,but had first setup my US bank account/job verification. Straightforward. Renting a car.well usually require a credit card. They will accept major Cdn credit cards, and your Cdn drivers license. But I would also quickly obtain your US drivers license (not a big deal, just go in and do it), because that ID is very powerful (ie for rentals,etc) in addition to your passport.
As for housing, I would HIGHLY recommend rent for 1-6mths first. I am presently here in the US, and the housing market is in a major downturn everywhere. Credit is hard to get for most people, and with prices decreasing, not a smart time to buy JUST YET (am projecting perhaps Spring 2009.). Depending who you rent from, they may ask for credit history, but most (if thru a Realty) can do a Cdn credit history check (they may charge you for it, prior to approving your lease etc). Another way around it is to get perhaps a credit letter from your current Cdn bank, before you come down, with contact#s.this works exceptionally well and shows you're proactiveness (always a plus).
Now, with for instance, RBC USA (or others ie TDW etc) they will recognize your Cdn credit history, and thus be easier to obtain a mortgage later thru them, and/or can leverage their contact info if you get setup with another US bank.
As for taxes, thus move anything/everything
(ie cash etc) to the US. Thus doing your US taxes will be easier when everything is here.thus leaving perhaps only your RRSP.
Cheers, good luck!