Managing Your Wealth Across Borders
Avoid having to liquidate your investment accounts or risk significant penalties and tax consequences as a result of your move to Canada. Our team will help you navigate the tax, regulatory, and investment challenges that many Americans face when moving to Canada.
Our financial plans will consider all facets of your wealth including taxes, insurance, estate, anœœd legacy planning. We are committed to helping you understand and simplify your cross-border financial concerns, so you caân pursue the opportunities ahead of you with confidence.
Frequently Asked Questions
Can Marnoa Private Wealth manage both my Canadian and U.S. investments?
Yes. We are licensed in both the U.S. and Canada. This allows us to serve clients and manage investment assets based in both Canada and the U.S.
Is there a 401(k) in Canada?
No. The equivalent to a 401(k) plan in Canada is a Group Registered Retirement Savings Plan (Group RRSP). Both 401(k)s and Group RRSPs are employer-sponsored retirement savings plans.
You cannot directly transfer or “roll over” a 401(k) or an IRA account into an RRSP without first collapsing or liquidating them, which can result in significant penalties or tax consequences.
At Marnoa Private Wealth, we can help you maintain IRAs in Canada.
Related: Transferring an IRA to an RRSP
My U.S. financial advisor said they can no longer manage my accounts because I moved Canada. What do I do now? My U.S. financial advisor said they can no longer manage my accounts because I moved Canada. What do I do now?
If you’re an American living in Canada, most U.S. brokerage firms cannot hold your 401(k)s in Canada or IRAs in Canada. This is due to regulatory restrictions that prevent most U.S. financial institutions from servicing accounts for non-U.S. residents.
At Marnoa Private Wealth, we can help you maintain your IRAs and other U.S.-based accounts in Canada. We can also assist you in transferring your 401(k) to a rollover IRA. This would allow you to maintain the tax-deferred status of your retirement savings. You won’t have collapse or liquidate them, which can result in significant tax consequences.
Our team can help you navigate these complexities and manage your U.S. retirement accounts effectively.
Related: 401(k) in Canada
What will happen if I don’t transfer my retirement investment account?
If you move to Canada and don’t transfer your U.S. retirement accounts, you should be aware of the following:
Many U.S. brokerages or U.S. plan administrators will often give you 30, 60, or 90 days to transfer your assets to an eligible firm once you’re no longer a U.S. resident. If you don’t act within that window, they may liquidate your account at the current market value, withhold taxes and penalties, and send you a check with the remaining balance. These actions could potentially trigger significant penalties and tax consequences.
At Marnoa Private Wealth, you can avoid these penalties or tax consequences by working with us. We can maintain your IRAs and/or other U.S. investment accounts in Canada.
Related: Transfer your 401(K) or IRA to Canada
I am a resident of the U.S. or Canada. I received an inheritance from a relative across the border.
Our team can assist you in setting up an account that is suitable for your loved one’s gift that is consistent with your financial objectives and takes into account the tax consequences of the benefit.
Related: Inheriting an IRA
Marnoa Private Wealth Counsel Ltd. (“Marnoa”) is a Portfolio Manager and Exempt Market Dealer registered in the provinces of Ontario, Quebec, British Columbia, Manitoba, Alberta, and Nova Scotia.
Marnoa Private Wealth Counsel Ltd. is an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”). Registration does not imply a certain level of skill or training. The information contained herein is provided for informational and educational purposes only and should not be construed as investment, legal, tax, or accounting advice, nor as an offer or solicitation to buy or sell any security, or a recommendation. The firm or its clients may or may not hold positions mentioned.
Opinions expressed are current as of the date of publication and are subject to change without notice. Past performance is not indicative of future results. Investing involves risk, including the possible loss of principal. Readers should consult their own professional advisers before making any investment decisions.
This content is directed to persons in those jurisdictions in which Marnoa is registered to provide investment advice. It is not intended to reflect the reader’s personal needs and circumstances and hence is not a solicitation for advisory services. Any information or description of services provided herein is effective on the date of publication only, and Marnoa does not undertake to advise the reader of any changes.
