Moving to the U.S. from Canada: A Focus on Retirement Accounts and Tax
A FOCUS ON RETIREMENT ACCOUNTS AND TAX
Moving from Canada to the U.S. can be a complex and challenging process when it comes to managing your wealth. Some of the biggest challenges you will face include transferring your retirement accounts and navigating the differences in tax laws between the two countries.
Working with a wealth management firm that specializes in cross-border planning can help you navigate these challenges and create a comprehensive wealth management plan that meets your needs.
At Marnoa Private Wealth, our cross-border financial advisors are dually licensed in Canada and the U.S. We offer cross-border investment and financial planning services to individuals and families whose financial concerns lie on both sides of the Canada and U.S. border.
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WHAT ARE THE FINANCIAL challenges when moving to the U.S.?
Transferring Retirement Accounts
One of the biggest challenges you will face when moving from Canada to the U.S. is transferring your retirement accounts. This can include Registered Retirement Savings Plans (RRSPs) and Registered Pension Plans (RPPs).
In general, it is not possible to transfer an RRSP or RPP directly to a U.S. retirement account. However, there are ways to transfer your retirement savings while minimizing taxes and penalties.
Our team of cross-border financial advisors can help you navigate the complex tax laws and regulations involved in transferring your retirement accounts. We offer strategies to circumvent or reduce these taxes and penalties.
Tax Differences
Another significant challenge you will face when moving from Canada to the U.S. is navigating the differences in tax laws between the two countries. The tax laws in Canada and the U.S. are very different, and understanding how they apply to you can be complex.
For example, while Canada has a progressive tax system, the U.S. has a marginal tax system. This means that the tax rate you pay in the U.S. will depend on your income, with higher earners paying a higher tax rate.
In addition, the U.S. has a complex tax system that includes a variety of different taxes, such as federal income tax, state income tax, and social security tax. You will need to understand how these different taxes apply to you and how to minimize your tax liability.
Our team of cross-border financial advisors can help you navigate the differences in tax laws and create a tax-efficient plan that minimizes your tax liability while staying in compliance with all the relevant laws and regulations.
Considering a move to the U.S. from Canada?
Our cross-border financial advisors are experienced in helping Canadians and Americans with investment and retirement accounts on both sides of the border.
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