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.
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.
The third and final installment of the series addresses what to do with your Registered Retirement Savings Plan (RRSP). This article discusses some of the fundamental decisions that must be made concerning any tax-deferred accounts that are being left in Canada. It also looks at some of the common strategies suggested by cross-border financial planning advisors.
Part 2 of the series focuses on the process of emigrating to the United States. The article includes a list of actionable items that support residency and should be undertaken prior to relocating. It also discusses tax treatment for a Canadian Pension Plan (CPP) and Old Age Security Pension (OAS) income following a move to the United States.
This is the first in a three-part series for the Canadian Expat Network (CEN) examining important aspects of cross-border financial planning. In the first installment, Cardinal Point’s John McCord looks at the Canadian Departure Tax, a levy assessed by the Canadian Revenue Agency (CRA) when an individual or family becomes a non-resident of Canada. It discusses which assets are subject to the tax and which aren’t, as well as strategies that can be used to lower the tax.