US investment accounts while moving to canada

[Johnparker]

Dear friends,

I am on H1B working in US for 10 years. I am moving to Canada this December. I am starting this thread to get information about how to manage all U.S investment account before/ during canada migration .
I believe many of my H1B friends went through the process when they migrated to canada ( On PR) from USA (H1B visa). I would appreciate if you can provide your valuable input and advice.

I have fidelity 401k account , Vangaurd Roth IRA , and Ally brokarage account.

Can I keep this account open in US after moving to canada ?

Also, I have financed car. I am paying every month installment. I still need to pay the remaining amount in next 3 years.
Can i bring the car with me in Canada and register with DMV in Canada ?

Please share your experience if anyone have had completed such process .

Thank you

 

[APPNOV2014NY]

401k / Regular IRA can be converted to RRSP. You will lose some money on this.

Roth IRA cannot be converted to TFSA.

 

[harirajmohan]

Dear friends,

I am on H1B working in US for 10 years. I am moving to Canada this December. I am starting this thread to get information about how to manage all U.S investment account before/ during canada migration .
I believe many of my H1B friends went through the process when they migrated to canada ( On PR) from USA (H1B visa). I would appreciate if you can provide your valuable input and advice.

I have fidelity 401k account , Vangaurd Roth IRA , and Ally brokarage account.

Can I keep this account open in US after moving to canada ?

Also, I have financed car. I am paying every month installment. I still need to pay the remaining amount in next 3 years.
Can i bring the car with me in Canada and register with DMV in Canada ?

Please share your experience if anyone have had completed such process .

Thank you

You can keep your investment accounts and use it if you can file taxes (on whichever the accounts application for taxes) in US. And of course all income to be taxed in Canada(deducting the taxes paid in US).
Car: You cannot import it without paying it off as you need original title to complete import process to Canada.

 

[Johnparker]

Thank you for your input .

How about cash saved in US saving accounts? Do I need pay Canada tax on it ?

Do I need to declare it at boarder ?

Thanks

 

[APPNOV2014NY]

No. You don't need to pay tax on money in US savings account. Are you moving this money to Canada? If Yes, then how are you moving it? If it's direct wire transfer etc then you don't need to declare it at border.

 

[fr72]

Dear friends,

I am on H1B working in US for 10 years. I am moving to Canada this December. I am starting this thread to get information about how to manage all U.S investment account before/ during canada migration .
I believe many of my H1B friends went through the process when they migrated to canada ( On PR) from USA (H1B visa). I would appreciate if you can provide your valuable input and advice.

I have fidelity 401k account , Vangaurd Roth IRA , and Ally brokarage account.

Can I keep this account open in US after moving to canada ?

Also, I have financed car. I am paying every month installment. I still need to pay the remaining amount in next 3 years.
Can i bring the car with me in Canada and register with DMV in Canada ?

Please share your experience if anyone have had completed such process .

Thank you

you can open a Canadian brokerage account and have them transfer all your US stocks as-is to them. I rolled over my 401k to IRA and kept it in US, had to call Fidelity to change my address to Canada.

 

[Johnparker]

No. You don't need to pay tax on money in US savings account. Are you moving this money to Canada? If Yes, then how are you moving it? If it's direct wire transfer etc then you don't need to declare it at border.

@APPNOV2014NY

Thank you for your reply . I saved it for down payment of home in USA . Yes I will use wire transfer between USA and Canada bank and transfer as it is require. In this case , do I need to pay tax in Canada for money I transfer from USA ?

 

[Johnparker]

you can open a Canadian brokerage account and have them transfer all your US stocks as-is to them. I rolled over my 401k to IRA and kept it in US, had to call Fidelity to change my address to Canada.

@fr72
Thank you for your reply .
I have fidelity 401k. I called them and they told me that , I can keep 401k as it-is in USA . They told me to change Canada address in 401k account profile after moving Canada .

One more question, I have individual brokerage account with ally financial. I called them and they told me either sell all stocks and close account or transfer to other brokerage in Canada . I am searching if any broker in Canada do account transfer I can save my stocks . Please advice if you know any firm in Canada do this . Thank you

 

[APPNOV2014NY]

@APPNOV2014NY

Thank you for your reply . I saved it for down payment of home in USA . Yes I will use wire transfer between USA and Canada bank and transfer as it is require. In this case , do I need to pay tax in Canada for money I transfer from USA ?

No. You don't need to pay taxes on this money.

 

[fr72]

@fr72
Thank you for your reply .
I have fidelity 401k. I called them and they told me that , I can keep 401k as it-is in USA . They told me to change Canada address in 401k account profile after moving Canada .

One more question, I have individual brokerage account with ally financial. I called them and they told me either sell all stocks and close account or transfer to other brokerage in Canada . I am searching if any broker in Canada do account transfer I can save my stocks . Please advice if you know any firm in Canada do this . Thank you

interactive brokers canada

 

[jetsons]

Hi,

This might be a stupid question
Do I need to pay any taxes on the interest earned on the amount in the 401k account in canada? I got somewhat confused reading the mail chains above.

 

[APPNOV2014NY]

Hi,

This might be a stupid question
Do I need to pay any taxes on the interest earned on the amount in the 401k account in canada? I got somewhat confused reading the mail chains above.

No. Canadian residents do not need to pay taxes on interest earned in 401k account as long as they are not withdrawing money from 401k before retirement age.

 

[Snowisland]

401k / Regular IRA can be converted to RRSP. You will lose some money on this.

Roth IRA cannot be converted to TFSA.

I am 61 years old and am PR. My investment advisor in the USA just told me the law is requiring me to either give power of attorney to someone in the USA that I trust or move my investment to an account that I must manage myself or move my money to Canada. I’ve been in Canada three years now. My accounts are Roth and mutual funds. I don’t trust anyone to have power of attorney so I’m thinking move the money to Canada. I’m not old enough to withdraw it so I have to find an investment mgr in Canada.
How old do I have to be to withdraw my money without penalty in Canada?
Will I lose any money by moving it to Canada?
I could just leave the money in the USA but I won’t have an investment advisor to look after it.
Thanks in advance for your help.

 

[AjeyaGupta]

Hi Guys,

I recently moved to Canada as a PR, while maintaining employment in US on H1B visa. I was looking for some help regarding my investment accounts in USA.
1. While being employed by US company, can I continue to maintain and invest in my 401k account on monthly basis?
2. I hold several investment accounts in different brokerage firms like Robinhood, Vanguard, Fidelity, Pershing etc. What happens to those? Can I continue to maintain those without actively investing in them? Or will I be required to liquidate everything from these accounts?
3. I was looking for brokerage firms in Canada. I saw good reviews of WealthSimple Trading platform. Anybody has experience with this platform? I am open to other suggestions/recommendations of a good investment firm in Canada, which will allow me to purchase Canadian and US based stocks/ETFs?

P.S: Not sure if this helps, but I still have my house in Michigan, and hence have a valid mailing address over there.

Thank you for your help in advance

-Ajeya Gupta

 

[Snowisland]

Hi Guys,

I recently moved to Canada as a PR, while maintaining employment in US on H1B visa. I was looking for some help regarding my investment accounts in USA.
1. While being employed by US company, can I continue to maintain and invest in my 401k account on monthly basis?
2. I hold several investment accounts in different brokerage firms like Robinhood, Vanguard, Fidelity, Pershing etc. What happens to those? Can I continue to maintain those without actively investing in them? Or will I be required to liquidate everything from these accounts?
3. I was looking for brokerage firms in Canada. I saw good reviews of WealthSimple Trading platform. Anybody has experience with this platform? I am open to other suggestions/recommendations of a good investment firm in Canada, which will allow me to purchase Canadian and US based stocks/ETFs?

P.S: Not sure if this helps, but I still have my house in Michigan, and hence have a valid mailing address over there.

Thank you for your help in advance

-Ajeya Gupta

I can answer part of your questions. Having the US address is good. Because without it you would need someone in the US to receive mail regarding your investments, and the would have to sign a form to do so.even though you would still get the info in Canada.
If you have a financial planner in the US you should ask them for these answers because they are the expert. Remember the US dollar exchange to Canadian. Taxes in Canada will be based on the exchange rate for the year and you will pay provincial taxes and federal on on your money, but you will get credit for taxes paid in the US.
You will need a cross border tax accountant. You can’t cash your investments except a traditional ira unless you are on USA soil. You can get dividends but not cash the investments without being in the USA.