Phil Hogan is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at phil@beaconhillwm.ca or via telephone at 778.433.1314. You can also read more about Phil at www.Beaconhillwm.ca/team/about-phil/
Cross Border Tax Q&A – Can I roll my RRSPs to an IRA?
08 June 10 
Cross Border Tax Q&A Question
Phil
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.
Kind Regards
XXXXXX
Answer
Hi XXXXXX
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.
Cheers
Phil Hogan, CA
250-661-9417
This commentary reflects the personal opinions, viewpoints and analyses of the Beacon Hill Wealth Management Ltd. partner providing such comments, and should not be regarded as a description of advisory services provided by Beacon Hill Wealth Management Ltd. or performance returns of any Beacon Hill Wealth Management Ltd. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Beacon Hill Wealth Management Ltd. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. Any discussion about taxation is for educational purposes only and should not be viewed as professional advice. Consult your tax professional for tax advice on your particular situation.
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