Cross-Border Wealth Management for Canadian and American Citizens
Cross border Wealth Management allows clients who have accumulated wealth in an IRA, 401(k), RRSP, or RRIF to keep their retirement accounts intact and have them managed from Canada or the USA.
You might know that you’re facing a tax problem when you change tax residence and move across the border. But what you might not realize is that you also have an investment problem.
Your USA advisor cannot manage your account once you are in Canada, and your Canadian advisor cannot manage your account once you are in the USA. If you close out your retirement account, you have a major taxable event. Suddenly, you owe tax that you weren’t planning for.
To add to this stress, you cannot seem to find anyone who understands your situation and knows how to make the transition easier.
Work with Qualified Cross-Border Financial Advisors
The solution is to work with an advisory team licensed in Canada and the US. Whether a permanent or temporary resident in Canada or the USA, we can help manage your accounts in either country. At SWAN we have a team of experts who can help you avoid the common pitfalls a cross border person faces. We work closely with a network of cross border accountants and lawyers who can help make the transition smoother.
Keep Your Accounts Legal While Minimizing Costs
What you may not know is that if you move to Canada and keep an IRA in the US by using a friend or family member's address, you are going against the SEC (Security Exchange Commission) guidelines. In addition, rolling over an IRA to a RRSP, while allowed, isn’t the best option and causes further complications.
Lastly, working with a Canadian advisor who isn’t familiar with the reporting requirement for U.S. persons may result in PFIC issues, causing extra work for your accountant and an extra cost for you.
What to Know About RRSPs and RRIFs When Moving from Canada to the US
As a Canadian moving to the US, you are not required to deregister your RRSP/RRIF once you stop residency in Canada. But when taking RRIF withdrawals, they will be subject to a non-resident withholding tax rate of 15%. Additionally, you cannot rollover your RRSP/RRIF to a US retirement plan.
You are, however, allowed to keep your TFSA assets which are tax free for Canadian purposes. Unfortunately, this does not apply for U.S residents.
At SWAN Wealth Management we help in the following ways:
- Manage your IRA and retirement accounts from Canada or the US
- Offer a pre-immigration consultation from a tax perspective before you move
- Guidance on retirement benefits such as CPP, social security and Medicare
- Transfer your investments from the USA to Canada keeping in tax deferred account
- As a portfolio manager we are not limited to just investing in mutual funds but can choose holdings tailored to your individual needs
- Hold investments in US and/or Canadian currency on both sides of the border
- Minimize your tax burden by creating a tailored financial plan
- Manage your investments over the long-term so you can retire happy
- Provide access to and management of your investments no matter on which what side of the border you live
- Understand the tax implications of various investment strategies
- Create a financial plan that serves you in the short and long-term
- Act according to our fiduciary duties to ensure every aspect of your financial plan is in your best interest
To get started simplifying your cross-border finances and investments, schedule a call below.
Website legal disclaimers
Raymond James Ltd. is an indirect wholly-owned subsidiary of Raymond James Financial, Inc.
Securities-related products and services are offered through Raymond James Ltd., member Canadian Investor Protection Fund.
Insurance products and services are offered through Raymond James Financial Planning Ltd, which is not a member Canadian Investor Protection Fund.
Raymond James Trust Services are offered by Raymond James Trust (Canada) in the provinces of British Columbia, Alberta, Saskatchewan, and Ontario, and by Raymond James Trust (Québec) Ltd. in the province of Québec. Both entities are wholly owned subsidiaries of Raymond James Ltd. Trust Services are not covered by the Canadian Investor Protection Fund.
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