Becoming a Canadian resident with US ties: what happens to a 401(k), IRA, HSA, and 529 plan, the step-up on arrival, US property you keep, and the filings a US citizen still owes.
21 guides, each written by a CPA licensed in the US and Canada.
Canada does not recognize a 529 plan's tax-free status. The 529 keeps its US tax-free status after you move. Canada ignores that status entirely.
Cross-BorderYes, Americans can own Canadian property, but a federal ban on buying homes in urban areas runs to January 1, 2027, and BC and Ontario add 20% to 25% foreign buyer taxes.
Cross-BorderYou can keep your US brokerage and IRA, but most brokerages restrict nonresident accounts once you move to Canada. Covers key rules, filing requirements,.
Cross-BorderThe deduction matches the amount contributed to the RRSP, offsetting the income inclusion from the distribution. Covers key rules, filing requirements,.
Cross-BorderUnlike a Canadian returning home, you have no departure tax problem (that is a Canadian tax concept for people leaving Canada, not entering it).
Cross-BorderThe decision turns on the US side (basis doesn't move) and one Canadian filing that switches on unless the place is personal-use.
Cross-BorderYes, the ESPP discount stays US-taxable. IRC 423(c) treats it as compensation sourced to where you worked, not where you live when you sell.
Cross-BorderYou keep your HSA when you move to Canada, but Canada taxes the growth annually, you cannot contribute without a US HDHP, and the treaty does not cover it.
Cross-BorderCanadian tax starts again on the day you establish residential ties here, which is a facts question rather than a border formality.
Cross-BorderWhen you leave Canada, ITA 128.1(4) deems you to have disposed of most of your property at fair market value, triggering capital gains tax.
Cross-BorderThe year you move from the US to Canada creates a split-year for Canadian tax purposes and may trigger deemed acquisition rules.
Cross-BorderYou become a Canadian taxpayer the day you settle, Canada resets your cost base to that day's value, and a US citizen keeps filing a US return for life.
Cross-BorderCanada has no retirement visa, so you need permanent residence or a family connection. Social Security follows you, and so does the US tax return.
Cross-BorderA Roth conversion before moving to Canada works if you convert while still a US-only resident and make the Article XVIII(7) treaty election after you move.
Cross-BorderForm NR74 produces a non-binding CRA opinion on your residency status when entering Canada. Usually not worth filing, for the same reason NR73 is risky.
Cross-BorderA US citizen (or green card holder) who incorporates a business in Canada creates a cross-border tax structure from inception.
Cross-BorderThere is no Canadian tax triggered by the purchase itself (no transfer tax beyond the provincial land transfer tax that applies to all buyers.
Cross-BorderA US citizen who moves to Canada continues to file US tax returns for life (citizenship-based taxation) and adds Canadian filing obligations as a new.
Cross-BorderTen steps: sell Canadian-listed funds, settle retirement accounts, document arrival, file the Roth election, skip the TFSA, log the FBAR.
Cross-BorderUsually yes for a 401(k), though CRA has never confirmed it: ITA 60(j) gives a deduction if five conditions hold and you fund the RRSP in time.
Cross-BorderYour 401(k) stays in the US when you move to Canada. You can leave it, take distributions, or move it into an RRSP under ITA 60(j). Here's how each option is taxed.