In part four of the series, John McCord examines how to adjust one’s risk management strategy when moving from the U.S. to Canada. Important considerations in this financial planning scenario include insurance and healthcare. The article discusses the mechanics, availability and restrictions of the Canadian healthcare system. It also looks at important questions to ask if one returns to Canada when holding U.S.-based life, disability and long-term care insurance policies.
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Part 3: Preparing to Exit the United States for Canada?
In the third series installment, Cardinal Point’s John McCord looks at how the differing tax systems of the U.S. and Canada can lead to the risk of “double taxation” for expatriates when both countries tax the same income for the same tax year. The Canada U.S. tax treaty helps mitigate this risk as does the exchange of citizen and resident tax information between the two countries. Established in 1980, the treaty asserts that residency—not citizenship—is the most important factor. The article also discusses tax credits and tax-withholding guidelines set forth in the treaty.
Part 2: Preparing to Exit the United States for Canada?
In Part 2 of his series for the Canadian Expat Network, John McCord discusses deferred compensation arrangements and currency conversion. The article looks at how to mitigate higher tax rates and the risks of double taxation for U.S.-based deferred compensation plans that are payable to individuals who are moving to or returning to Canada. McCord also addresses different strategies for currency conversion and the management of currency risk.
Preparing to Exit the United States for Canada?
This article by Cardinal Point’s John McCord for the Canadian Expat Network discusses some of the common misconceptions about a move from the United States to Canada. Readers are advised to start planning with their advisor as far in advance as possible, particularly in the areas of retirement planning, deferred compensation arrangements, currency conversion, the Canadian U.S. Tax Treaty, and insurance and estate planning. The article goes on to provide actionable steps to consider when making a cross-border transition, specifically in the areas of qualified retirement plans, Roth IRAs and U.S. retirement plans.
Preparing to Exit Canada for the United States? (Part IV)
In the fourth installment of the series, John McCord looks at the importance of consulting an attorney with cross-border expertise to analyze your estate plan before a move. Estate planning is a sophisticated, rapidly changing subject, and the laws governing it are not uniform between Canada and the U.S. A collaborative approach between cross-border financial advisors, CPAs and other practitioners is recommended when developing a cross-border estate plan. The article also looks at Canadian corporate pensions and how a U.S. move may impact pension taxation. Canadian pensions are taxed at IRS income tax rates when domiciled in the U.S., which can create additional after-tax pension income but also raises the risk of double taxation.