Canadian moving to Florida and

QUESTION: Hello David,
I am a Canadian resident and have been living in Florida for quite a while
without becoming officially a resident...I am thinking of becoming a USA
resident. I have RRSP in Canada and also have a 401K and a IRA in the USA.
Can I transfer my RRSPs to IRA or 401K? Are there any
advantages/disavantages in doing so?
In the far futur when my children are holder, I may move back to Canada. Can
I Then change my IRA and 401K to RRSPs? Are there any
advantages/disadvantages in doing so ?
Thank you very much.
---------------------------------------------------------------------------
david ingram replies:
Because you have a 401(K) and an IRA, I have to assume that you are there on
an L, H or TN visa. As such, you are there as a resident alien for TAX
PURPOSES as soon as you have been there more than 183 days in a year or have
moved there with your family and are working there.
What you have not done, I assume is apply for and receive a "Resident Alien"
or "Green" Card for IMMIGRATION PURPOSES.
If possible, I recommend the Green Card because it allows you to change jobs
at will and after three (married to an American) or five years, you can
become a US citizen.
----------
If you are working in Canada when you come back to Canada it is possible to
convert an IRA to an RRSP by a round about method.  You get the 401(K)
transferred by rolling it into an IRA first.
Do I recommend it?  Sometimes, Not usually, it depends!
Because of currency conversions and the high Canadian stock market, it was
absolutely, the thing to do from Mar 15, 2000 to Jan 31st 2006.  Today, I
might be inclined to leave it in the US if I had another pension growing in
Canada or maybe roll over half of it into a Canadian RRSP.
The following older Q&A might assist you.
QUESTION:
worked in CA for 4 yrs. returned to BC in Apr.'04.  Need to transfer my
retirement fund but having difficulties with bank and credit union.  US
specifies that I must roll it over to IRA account (Individual retirement
account.  I do not want to be subject to the 20% withholding fee for IRS.
What would be the best way to get the funds to me here in Canada.
=======================================
david ingram replies:
1.  move it to an IRA and leave it there in one of the world's strongest
economies.  Most financial advisors are trying to get "more" of their
clients' money into US funds.
2.    If you just have to have it in Canada, you have to cash it in in the
US and pay your tax to the US.  take what is left, add the amount (even if
borrowed) of the tax you paid to the US and buy your Canadian RRSP.  That
will give you a tax deduction which should be larger than the tax you paid
to the US.
When you get the refund, pay back the loan.  You will have transferred the
money quite handily.
The amount you took out is also taxable on your Canadian return.  Pay that
tax with the tax you paid to the US as a foreign tax credit.
You will likely need help.
Fred Snyder at (604) 731-8900 (Dundee Wealth management) or Shaun Rickerby
at (604) 482-5188 (TS Waterhouse)  can help you with the process if you are
coming back to BC.  Darrell Thompson with Blackmont Securities in Toronto
(866) 776-7704 can help you with the US and Canadian side just about
anywhere because of his licensing.
----------------------------------
Answers to this and other similar  questions can be obtained free on Air
every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Cartier
Partners and I will be hosting an INFOMERCIAL but LIVE talk show called "ITS
YOUR MONEY"
Those outside of the Lower Mainland will be able to listen on the internet
at
www.600AM.com
Local phone calls to (604) 280-0600 - Long distance calls to 1-866-778-0600.
Old shows are archived at the site.
This from ask an income tax immigration planning and bankruptcy expert
consultant guru or preparer  from www.centa.com or www.jurock.com or
www.featureweb.com. Canadian David Ingram deals daily with tax returns
dealing with expatriate:
multi jurisdictional cross and trans border expatriate gambling refunds for
the United States, Canada, Mexico, Great Britain, the United Kingdom,
Kuwait, Dubai, Saudi Arabia, South Africa,  Thailand, Indonesia, Egypt,
Antarctica,  Japan, China, New Zealand, France, Germany, Spain, Italy,
Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii,
Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan,
Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St
Vincent, Grenada,, Virgin Islands, US, UK, GB, American and Canadian and
Mexican and any of the 43 states with state tax returns, etc.
income tax wizard wizzard guru advisor advisors experts  specialist
specialists  consultants taxmen   taxman tax woman planner planning preparer
of Alaska,  Alabama,  Arkansas,  Arizona,
 California Denver  Colorado, Connecticut,
Delaware District of Columbia Miami  Florida,
Garland Georgia,  Honolulu Hawaii,  Idaho,  Illinois,
  Indiana  Des Moines Iowa  Kansas  Kentucky,
 Louisiana  Bangor Maine  Maryland
 Boston, Massachusetts, Michigan, Minnesota,
Mississippi,  Missouri,  Montana,  Nebraska,
Nevada, New Hampshire,  New Jersey,
New Mexico, New York, North Carolina,
North Dakota,  Ohio,  Oklahoma,  Oregon.
Paris,  Rome, Sydney, Australia Hilton
Pennsylvania,  Rhode Island,  Rockwall,
South Carolina, South Dakota, Tennessee,
Texas,  Utah, Vermont,  Virginia,
West Virginia, Wisconsin, Wyoming,
British Columbia, Alberta, Saskatchewan,
Manitoba, Ontario, Quebec City,
New Brunswick, Prince Edward Island,
Nova Scotia, Newfoundland, Yukon and
Northwest and Nunavit Territories,
Mount Vernon, Eumenclaw, Coos Bay
and Dallas Houston Rockwall Garland
Texas  Taxman and Tax Guru  and wizzard
wizard - David Ingram's US/Canada Services
US/Canada/Mexico Tax Immigration & working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321
davidingram at shaw.ca
www.centa.com www.david-ingram.com
Disclaimer:  This question has been answered without detailed information or
consultation and is to be regarded only as general comment.   Nothing in
this message is or should be construed as advice in any particular
circumstances. No contract exists between the reader & the author and any
and all non-contractual duties are expressly denied. All readers should
obtain formal advice from a competent financial, or real estate planner or
advisor & appropriately qualified legal practitioner, tax or immigration
specialist in connection with personal or business affairs such as at
www.centa.com. If you forward this message, this disclaimer must be
included."
 David Ingram gives expert income tax & immigration help to non-resident
Americans & Canadians from New York to California to Saudi Arabia to Mexico
to China or Chile - Cross border, dual citizen - out of country investments
are all handled with competence & authority.

Trackback

Trackback URL for this entry: http://www.centa.com/trackback.php/UsCaWeekofMon20060925002867.html

No trackback comments for this entry.

0 comments