Canada and the US share many similarities including the longest
international border between two countries. Due to the proximity of
the two countries, many Canadians find themselves living and
working in the US and contributing pre-tax dollars into
employer-sponsored retirement plans such as the
401(k)1 and Individual Retirement Account or IRA
(collectively, US-based retirement plans). Once their US employment
ends, many Canadian workers returning to their home country must
eventually undertake the task of determining what to do with their
US-based retirement plans as retirement age draws near (the
Canadian retirees).
There are a variety of reasons why a Canadian retiree with a
US-based retirement plan would endeavour to transfer or convert his
401(k) or IRA into a Canadian plan such as a registered retirement
pension plan (RRSP). Some make the transfer to streamline their
financial investments to just one country, increase access or
expand the investment options
