Today we are here to discuss—Can you make contributions to your RRSP or TFSA as a non-resident of Canada?
That means you have moved to the U.S. or any other country. You have become a non-resident of Canada for tax purposes, but, you still want to contribute to your Canadian retirement accounts or your TFSA.
So, can you make contribution not so as a non-resident?
Contributing to RRSP as a Non-Resident of Canada
There are two ways to make contribution to your RRSP as a non-resident of Canada. Either you already have room from previous wages, meaning previous compensation from previous years that is being carried forward, or…
You don’t have room, but have earned income in that year through Canada-sourced compensation or employment which allows you to make contributions to the RRSP as a non-resident.
You must have Canada-sourced income to contribute to an RRSP once you have contributed to the full amount of your room from previous years.
Contributing to TFSA as a Non-Resident of Canada
You cannot make contributions to your TFSA as a non-resident of Canada. If you do make contributions, there is a penalty of 1% every month on that contribution, which gets expensive quickly. So, make sure that you do understand this if you have moved from Canada and you are a non-resident for tax purposes.
You have the option to make contribution to RRSP account, with conditions, but you cannot contribute to the TFSA.
We will be doing another video and article specifically on RRSP contributions while a non-resident or for a beneficiary who is a non-resident or resident of Canada, and answering a subscriber question from a non-resident soon.
Planning cross-border retirement with an expert CPA is the surest way to make sure you are covered. We maintain offices in Toronto and Houston, and our team is here to help.
🇺🇸 Houston Office – (713) 451 – 9700
🇨🇦 Toronto Office – (416) 800 – 2709
