Transferring Pension Funds

[Carlawarla 1]

Well, I don't have any RRSP's. just my Canadian pension held by my employer. The options I have are to put it in another holding fund, or just keep it there. I took an early retirement at 50, and have no intention of touching that money for quite some time so I'm just having them hold it. (While getting an excellent interest rate mind you!). I'm going to look into getting a copy of that book referenced.

Carla

[Kathryn41 3,205]

I cashed my RRSP before I moved to the States, added it to my income in Canada for the year and paid the taxes on it - it was less than the withholding tax would have been if I had cashed it in after I moved, since I only worked half a year in Canada but was able to claim full year deductions, plus I didn't have a large amount in RRSPs - yet. I used part of the money to pay off all remaining debts in Canada, and then the rest was re-invested here in the US.

And yep - I have 2 different locked in pensions plus CPP back in Canada waiting for me to become old enough to claim them. Won't that be fun come income tax time!

Edited September 13, 2007 by Kathryn41

[Krikit 1,164]

RRSPs could also be further complicated by state laws restrictions on foreign investment brokers. I had to cash mine out and got dinged the 25% because of a stupid NC law that says I can't have a foreign investment broker. You can have foreign investments but foreigners can't manage it.

Strangely enough, my broker talked about North Carolina specifically. He said it's a "closed" State (meaning what you said above) so he is now licensed in NC so he can work with his Canadian clients who are living there.

[Krikit 1,164]

And yep - I have 2 different locked in pensions plus CPP back in Canada waiting for me to become old enough to claim them. Won't that be fun come income tax time!

Ooops. I'm sorry. I started to laugh hysterically there for a moment.