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Can a U.S. retirement plan be transferred to an RRSP?

Ask the professionals – July 2017

Written by Dave Lee
July 12, 2017

Yes. Many Canadian citizens who have worked and lived in the U.S. have repatriated to Canada. Canada’s Income Tax Act generally allows traditional IRAs and 401(k) plans to be transferred to Canada.

If all conditions are met, there will generally be no Canadian tax liability on a transfer from an IRA or 401(k) plan to an RRSP. However, some 401(k) plans cannot be transferred directly to an RRSP and will first need to be rolled into an IRA. Given the various tax implications, you should consult a tax professional if you are in this situation. I can also work with your tax advisor to understand the impact to your overall financial picture.

Contact me for a complimentary copy of a special report from our Wealth Management Taxation department: “Should Canadian residents transfer their U.S. retirement plans to their RRSPs?