@aide7895 Unfortunately, this information is not correct. For starters, anyone who is already a U.S. resident is only allowed to open a Canadian RRSP if they have Canadian-source *earned* income. ...
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@aide7895 Unfortunately, this information is not correct. For starters, anyone who is already a U.S. resident is only allowed to open a Canadian RRSP if they have Canadian-source *earned* income. That applies only to a small minority of the U.S. residents who have an RRSP. Most of us are in the situation you describe as an exception. But the "opened before/after" consideration doesn't actually make any difference to how RRSP withdrawals are reported and taxed, because of the tax treaty between the U.S. and Canada. Along with numerous other things, the tax treaty provides that certain specified types of retirement accounts get the same tax treatment in both countries. Because your RRSP was funded by contributions of *untaxed* dollars - analogous to a U.S. tax-deferred traditional IRA - tax is calculated on the whole amount at the time it is withdrawn, in both countries. You can't consider the cost basis on it when reporting withdrawals to either Canada or the U.S., because no tax was previously paid on the contributions that became the cost basis. (Conversely, if you have a U.S. Roth IRA funded with *post*-tax dollars and then move to Canada, it's treated the same in both countries: no tax on withdrawals, regardless of cost basis.) It used to be that you had to explicitly elect to accept the tax treaty provisions which permit the RRSP assets to be tax-deferred in the U.S. until withdrawn. If you didn't, the IRS considered it to be just an ordinary foreign investment account, so you had to report its dividends/capital gains etc. every year on your U.S. tax return and pay tax on that. This was the only situation where the cost basis of holdings in an RRSP account would have any relevance (and it was still irrelevant in Canada). But the IRS basically stopped making that election optional a while back. So just be sure that every year, even when you don't make an RRSP withdrawal, you comply with reporting the account as an "Other Foreign Asset" on Form 8938 and, if required, the separate FinCEN 114 (FBAR) as well.