Can RRSPs be rolled into 401Ks, IRAs or Roth IRAs?
Dear Mr. Ingram,
My wife and I moved from Canada to the U.S.A. as permanent residents more than 10 years ago. Can we roll our Canadian RRSPs into U.S. 401K, IRA or Roth IRA accounts? Any tax implications for such a move?
Thanks and best regards,
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david ingram replies:
The answer is no. There is no practical way to roll or move an RRSP into a US tax sheltered account all at once. You can, of course, just remove 'X' dollars a year from your RRSP, pay the 25% tax and use that amopunt of money to make a contribution to a company account by thinking of it as substituted money.
i.e. use the Canadian RRSP money to make a larger contribution than you might be able to afford otherwise.
My wife and I moved from Canada to the U.S.A. as permanent residents more than 10 years ago. Can we roll our Canadian RRSPs into U.S. 401K, IRA or Roth IRA accounts? Any tax implications for such a move?
Thanks and best regards,
----------------------------------------
david ingram replies:
The answer is no. There is no practical way to roll or move an RRSP into a US tax sheltered account all at once. You can, of course, just remove 'X' dollars a year from your RRSP, pay the 25% tax and use that amopunt of money to make a contribution to a company account by thinking of it as substituted money.
i.e. use the Canadian RRSP money to make a larger contribution than you might be able to afford otherwise.
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