Canadian RRSP Impacts for Cdn living in U.S. - Dan Walkow, Seabank Capital, Darrell Thompson, Blackmont Securities


I have been living in the U.S. for 8.5 years now and have recently moved to Chicago from California.  We have a significant amount of $$ in Canadian RRSP's of which over half is in a mutual fund that has excessively high fees.  I have wanted to rebalance my RRSP and move money from one mutual fund into one or more different ones, all of course remaining within the RRSP.  I am told that at leat with respect to California who don't recognize the Cdn/US free trade tax treaty, that that would trigger significant California tax on any and all gains including those gained before I ever moved to the U.S.?!?!?  Now that I have moved to Illinois, do I have flexibility to move money within my RRSP or am I still stuck.   My broker in Canada isn't even sure if he is allowed to execute the trade.

david ingram replies:

I am so busy that you are the only question answered for the last couple of days out of about 300 received in the last couple of days.

While you were in California, the internal earnings of your Canadian RRSP accouts were taxable on your California tax returns.  California is the only state that does not recognize the Federal exemptions when claimed.

To claim the federal exemptions, you need to fill in form 8891. Don;t forget that youalso need to fill in forms TDF 90-22.1 as well to avoid the possibility of an up to $500,000 fine plus five years in jail;.  (see the bottome two questions on schedule B of your 1040)

Your broker can NOT likely move the contents of your RRSP.  You need someone like Darrel Thompson or Dan Walkow as follows from an older reply: -----------------------------------
QUESTION: 1. have been trying to find ethical investment firm to go with in Canada and can not seem to get any unbiased answers We live in Red Lake Ontario (landed immigrants), but are also US citizens

2. Is this Stansberry & Associates legit, as they seem to have many different opportunities claiming great returns
Pinchot Retirement Plan,  Master Limited Partnership, Market Index Target Term Security , Oakmark Select Funds
Thanks greatly looking forward to your email

--------------------------------------------------------------------------- david ingram replies:
I have no good or bad knowledge about Stansbery and Associates. None of my clients deal with them to my knowledge.

From looking at their website, they seem to be a newsletter operation as mucyh as anything.  I have about 15 interviews with newsletter writers on gold (John Embry), oil, uranium (Martin Kafusa), silver (Sean Rahkimov) real estate (Ozzie Jurock), futures and commodities (Victor Adai), Resources in General (Elsworth Dickson, Publisher of Resource World)  etc at - mostly in the third column.

Two ethical people who specialize in selling securities, RRSPs, etc., to US citizens in Canada or Canadians in the US  are:

Mr Darrell Thompson
Blackmont Securities
Local    (416) 874-8007
LD        (866) 775-7704


Dan Walkow
Seabank Financial
White Rock
Local     (604) 541-9952
L D        (866) 541-9952
These two individuals and their companies have gone to the effort to get themselves registered just about everywhere so they can deal with a Candian in Florida or California or Nevada, etc.

Note that because of their specialty, they tend to deal with accounts in excess of $200,000

However, both parties would welcome an exploratory call. �