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Plan ahead by consulting with a cross-border financial advisor, so you can understand the options on how to move your 401(k) to Canada and keep the tax deferred status. Have a pre-immigration consultation with a Cross-Border Accountant. Understand the 401(k) equivalents in Canada.
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Mar 28, 2022 · Creating a cross border retirement plan involves sifting through a variety of options, avoiding tax traps, and navigating the rules of two countries all while trying to maximize the financial potential of your retirement accounts.
In Canada, the equivalent to a 401 (k) plan is a group Registered Retirement Savings Plan (group RRSP), while the equivalent of an IRA is an RRSP. You cannot “roll over” 401 (k) and IRA accounts into RRSPs without first collapsing the account and taking potentially high taxes and penalties.
- 925 W Georgia Street, Suite 2100, Vancouver, V6C 3L2, BC
- (604) 654-1148
When you move to Canada from the United States, you might face many challenges in terms of your retirement accounts, including your 401 (k) plan. Our cross-border financial advisors can help you navigate these challenges and make the best decisions for your financial future.
Develop a cross-border financial plan that encompasses 401(k)’s or IRA’s, U.S. and Canadian pension plans (Social Security, CPP, OAS) to ensure distributions and income tax reporting are managed accordingly.
- 925 W Georgia Street, Suite 2100, Vancouver, V6C 3L2, BC
- (604) 654-1148
Sep 30, 2022 · The Canadian equivalent of a 401(k) is called a Group Registered Retirement Savings Plan, or Group RRSP. Canadian employer-sponsored retirement plans work in similar ways to plans in the US, but there are some key differences to be aware of.
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Jul 6, 2021 · There are two matters to look at when figuring out if you qualify for a deduction on your contribution to a foreign pension plan while residing in Canada: the type of work arrangement and the type of pension plan. Let’s take a closer look at the two types of work arrangements.