Simplify the transfer of retirement assets into Canada.

In today’s globalized world, it’s common for Canadian resident taxpayers to have retirement assets accumulated in various countries. We can advise on:

• Whether the investment income in these pension plans is taxable annually in Canada or is tax-deferred until the pension is taken
• The income that will be reported and the tax that will be paid when the pension is withdrawn, or the pension assets are repatriated to Canada

We can also help you transfer your foreign pension assets on a partially tax-deferred basis to a Canadian registered retirement savings plan (as is permitted by subsection 60(j) of the Income Tax Act). This is a common request made of us, as a Canadian resident finds it simpler to monitor and manage investments held in Canada. The goal of our assistance in this situation is to optimize the amount of the pension to be transferred to a taxable Canadian investment account (to use the foreign tax credit resulting from the foreign tax on the pension withdrawal) and the amount to be transferred to the RRSP (to avoid Canadian tax to the extent possible). We provide the following services to assist this process:

• An evaluation of whether your pension assets are eligible for a tax deferred transfer and whether a tax-deferred transfer is warranted (i.e. it might be cheaper to pay the tax currently on small pension transfers than to do so on a tax-deferred basis)
• Preparation of pro-forma tax returns (Canadian, and where applicable, U.S.) for the year of the transfer to determine the correct amount of assets to transfer to each type of account
• Issuing instructions to the investment advisor
• Preparation of Canadian and U.S. tax compliance for the transfer, as needed

If you require professional advice on the transfer of retirement assets to Canada, please reach out. An Unbordered cross-border tax specialist can help make the process as seamless as possible.