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AZKira

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    AZKira got a reaction from liverlover in locked in GIC transfer to US IRA?   
    By the way - everyone with money in Canada in RRSP, locked or unlocked, or money in a savings account, or any other type of account - there are extra forms that have to be filled in when you do your U.S. taxes.
    See TDF 90-22.1 for any non-U.S. account for which you have signing authority, AND 8891 for RRSP, AND the last two questions of Schedule B of the 1040. Big penalties possible if these are not done.
  2. Like
    AZKira got a reaction from Kathryn41 in locked in GIC transfer to US IRA?   
    By the way - everyone with money in Canada in RRSP, locked or unlocked, or money in a savings account, or any other type of account - there are extra forms that have to be filled in when you do your U.S. taxes.
    See TDF 90-22.1 for any non-U.S. account for which you have signing authority, AND 8891 for RRSP, AND the last two questions of Schedule B of the 1040. Big penalties possible if these are not done.
  3. Like
    AZKira got a reaction from Kathryn41 in locked in GIC transfer to US IRA?   
    Is this a GIC within a locked-in RRSP or is it just a GIC that hasn't come due yet? If it is just a GIC, once it has come due you can withdraw the money. If it is a GIC within a locked-in RRSP - big difference.
    I went through this about a year ago with a locked-in RRSP at TD Canada Trust. It is complicated and time consuming and frustrating.
    First of all, is it a federally-regulated or provincially-regulated RRSP, and if provincial, which province. Rules are different.
    You have to have been a Canadian non-resident for two years (dated from when you did your "Departing Canada" tax return) and you have to apply for and receive your NR-73 statement of non-residency from CRA. The bank will need it to unlock the funds.
    If you unlock and withdraw the money the bank will withhold 25% (Canadian income tax). If you unlock but leave the money as a "normal" RRSP there is no withholding until you cash it out.
    I had to go to the bank (any branch in Canada) in person to do the unlocking and to set up the new RRSP, and it could not be mutual funds, only GICs. The Canadian bank can't sell you mutual funds once you are a non-resident.
    As far as converting to an IRA - that's completely separate and unrelated. You can sell the RRSP and buy the IRA but cannot transfer directly from one to the other.
    I hope this helps. It is not an easy process. Good luck!
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