Understand the US taxation of RRSPs and RRIFs 1

The US tax policy The US tax system is a Citizenship Based Taxation, meaning that US citizens (and permanent residents) are taxed on their worldwide income wherever they live. By default, income earned in an investment account would be taxed. Fortunately, income tax treaties allow for the tax deferral of income earned within a retirement account in the ...

RRSP : Response to concerns regarding Revenue Procedure 2014-55 (Which obsoletes form 8891 and changes the way a treaty election for RRSPs is made)

While not everything is good news, I think that the concerns found in this comment (similar to the ones voiced by Moodys Gartner here) are not always founded.   The Rev. Proc. is a problematic for a multitude of reasons, including: 1. it substitutes a form for which there is no failure to file penalty ...

Form 8891 – an obituary

Form 8891 – an obituary
History Before April 15, 2002, and despite the fact that tax deferral for RRSPs was provided by the US Canada tax treaty of September 26, 1980, RRSPs didn’t have specific forms, hence 3520s and 3520-As were used by the minority of taxpayers wanting to be compliant with the rules relating to having an interest in foreign trusts. To these, a form ...

The IRS makes it easier for RRSPs to be elected as tax-deferred under US law

Original source: IRS Simplifies Procedures for Favorable Tax Treatment on Canadian Retirement Plans and Annual Reporting Requirements IR-2014-97, Oct. 7, 2014 WASHINGTON ― The Internal Revenue Service today made it easier for taxpayers who hold interests in either of two popular Canadian retirement plans to get favorable U.S. tax treatment and took additional steps to simplify ...