I’ll be moving to California permanently next January and I wanted to get your opinion on a tax matter.
Will I be able to “roll over” my RRSPs to an IRA (before or after I leave) into an IRA tax free?
Thanks for your help in this matter.
There is some confusion regarding the ability to roll RRSPs to IRAs. In fact it is not possible to tranfer or rollover a Registered account e.g. RRSP to an IRA. You would have to liquidate the RRSP, pay the required tax in Canada and the US (taking into consideration foreign tax credits) and use the cash to contribute to your IRA.
If you plan on keeping your RRSPs when you move to Cali keep in mind that any subequent withdrawals would result in a 25% withholding at the branch level.
If you have any other questions please don’t hesitate to give me a ring at 250-661-9417.
Phil Hogan, CA
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