I have helped hundreds of people successfully navigate from the US to Canada. If you're thinking of moving or retiring to Canada contact me today to chat about your plans.
I can be reached via email at phil@philhogan.com, by phone at 250-661-9417 or through my contact page here.
I look forward to speaking to you soon.
Phil Hogan, CPA, CA, CPA (CO)
Cross-Border Tax and Investment Specialist
Question
Hi Phil
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.
Thanks
XXXXXX
Answer
Hi XXXXXX
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
Regards
Phil Hogan, CA
250-661-9417
Hi
Great info on the site. Question for you. Can I file the 8891 forms late to the US? If so what is the process and if not what are the potential penalties?
Thanks
Hi Joline
You can file them late and in most cases the IRS will not assess a penalty is they are accompanied by a 1040x.
Call me at 250-661-9417 if you need any help.
Regards
Hi
I did not know file 8891 in the past 5 years as I did not know. Should I complete a 8891 form for each missed year?
Thanks,
Julie