RRSP withdrawal in the USA -

My_question_is: Applicable to both US and Canada
Subject:        RRSP
Expert:         taxman at centa.com
Date:           Wednesday January 24, 2007
Time:           10:00 AM -0500
I am Canadian citizen now living / working in the US with a green card. My
wife and I have RRSPs. My wife currently has no income. Is their a way to
reduce or eliminate the 25% withholding tax when we cash our RRSPs?
david ingram replies:
Well - not impossible but highly impractical.
You could move back to Canada and not work.  You could then take out about
$8,500 a year each tax free,
Otherwise, it is 25% withholding on non-resident withdrawals.
Remember, the RRSP internal earnings are taxable on the US return unless you
exempt them with form 8891.  California does NOT recognize the exemption so
California residents have to pay tax each year to California on the internal
earnings of their Canadian RRSP accounts.  That is not all bad because it
increases the ACB (adjusted cost base) of the plan and lowers California tax
when withdrawn later.
The following gives details of the forms you should be filing.
taxman at centa.com: Please see bottom of message if you wish to unsubscribe.
Subject:        Manitoba LIF held in Canada Unlocked in US?
Expert:         taxman at centa.com
Date:           Friday November 17, 2006
Time:           01:18 PM -0500
I am 65 years of age, living in the US for more than 5 years, and have
Canadian RRSPs and a LIRA with TD Waterhouse. I understand that I can unlock
half of my LIRA account, but does this mean I can transfer it to the US?  I
am currently working in the US, so would prefer to defer taxes for the time
Also my investments in Canada have been poorly managed, and I am looking for
alternative options as options are limited to someone registered with the
SEC in North Carolina where I reside.
david ingram replies:
There is no sense taking money out sooner than you need to.  The longer you
can leave it without transferring to a RRIF or annuity, the better when you
do not need the money.
However, there are a very few Canadians who can look after your RRSP with
full service when you live in the United States.
Don Walkow at Seabank in Greater Vancouver can certainly look after your
situation.  You can see more about the organization at:
www.seabankcapital.com  His phone number is: (604) 541-9952.
Likewise, Darrel Thomson of Blackmont Securities in Toronto has also gone to
the effort to be licenced throughout the US.
His number is (416) 874-8007
His website is www.blackmont.com - You might recognize Blackmont as the old
Yorkton Securities.
Remember, in the meantime, you have to file forms TDF 90-22.1 and 8891 to
report your LIF and RRSP in Canada - failure to file the forms can result in
penalties of up to $500,000 PLUS 5 years in jail.
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 10 PM 7 days a week  Vancouver (LA) time -
(please do not fax or phone outside of those hours as this is a home office)
email to taxman at centa.com <mailto:taxman at centa.com>
www.centa.com <http://www.centa.com/>  www.david-ingram.com
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