Each year I help over 500 clients file their Canadian and US tax returns as well as plan for both their Canadian and US investment accounts. I also regularly help new US clients plan for their move to Canada.
My US accountant told me that my Canadian RRSPs are not taxable in the US, however someone told me that I need to file a TD9022 to report the RRSPs. Does this form exempt tax on the RRSPs? I moved to the US from Canada 3 years ago.
Your friend was correct that you would have to file a TDF 90-22.1 with your US tax return to claim the RRSP as long as you had foreign accounts that totaled more than $10,000 USD. If the value of your total accounts (including non-registered accounts) does not exceed $10,000 the TDF 90-22.1 is not required. Be sure to file this form as the penalty associated with not filing is $10,000 (I haven’t actually seen the IRS impose this penalty, however I’ve heard of other that have).
Possibly more important is the required filing of a form 8891. The deferral of RRSP income is not automatic for US purposes and this form needs to be filed to defer such income.
If you haven’t been filing these forms I suggest you discuss it with your current accountant and get caught up.
Hope that helps
Phil Hogan, CA