Americans Bringing in Money from the US
Americans moving north of the border into Canadian provinces and territories have a lot to consider before making the trek. One vital piece of information is often overlooked – Canadian securities laws dictate a financial advisor licensed in Canada must be used for all investment transactions.
This simple oversight can lead to major issues if not taken care of – including the liquidation of retirement assets.
The United States Internal Revenue Service (IRS) considers most Canadian retirement and tax-advantaged plans (TFSAs, RESPS, ETFs, and mutual funds included) as passive foreign investment companies. The Security Exchange Commission (SEC) does not allow for the funds to be left behind in the US, either.
Degelman Pruden Wealth can help. Our experts will give you confidence that your funds will be appropriately handled as you transition to life in Canada. We can also manage funds like an IRA regardless of which side of the border you reside in.
Attempts to avoid these issues informally typically result in failure and penalty. Using a relative’s address, for instance, is a violation of SEC guidelines that frequently ends in tax problems at the state level.
Our knowledgeable team can walk you through the various ways to take advantage of favourable tax policies, such as converting an IRA to a Roth IRA. We have a deep understanding of these policies that offers our clients the best opportunity to manage funds successfully.
Simply put, Degelman Pruden Wealth is qualified and prepared to put your finances in the best position possible for short and long-term growth.
Degelman Pruden Wealth can assist you by:
- Offering consultations prior to your move
- Handling the transfer of your assets in a tax-appropriate way
- Creating plans that position your funds with less tax burden
- Providing high-quality asset management regardless of residence
- Holding funds in the United States or Canadian dollars
- Educating you on the benefits of various Canadian retirement tax strategies
The information contained herein has been provided for information purposes only. The information has been drawn from sources believed to be reliable. Graphs, charts and other numbers are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document. Wellington-Altus Private Wealth Inc. (WAPW) does not guarantee the accuracy or completeness of the information contained herein, nor does WAPW assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Before acting on any of the above, please contact your financial advisor.
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