I'm an US citizen, living in Canada. I'm getting paid by an US company in USD. That doesn't make me a snowbird, but some kind of inverted snowbird, is there a name for me?
Anyways, I'm trying to plan for retirement, and I'm likely going to stay in Canada (working on my path towards citizenship). It is hard to say if I will be here when I retire, which sometime from now still (I'm 41).
I pay Canadian federal and provincial taxes (and tax treaty away the US taxes). For the past several years I've been just getting my USD paycheck, and depositing it in my bank account and getting it converted into CAD. I started to realize that this was dumb, because I could get better exchange rates if I opened a USD bank account and converted the money via Norbert's Gambit. I haven't quite figured out how to get that USD into my BMO Investorline account yet, but until then I've been using knightsbridgefx to convert the money to get a better exchange. In the process of getting my investment account setup, I figured I would do a little investment for retirement, and start a RRSP. I found out quickly that as a US citizen I should avoid TFSAs, and then learned about the PFIC restriction for US citizens which means that I should *not* own any Canadian ETFs unless they are in a RRSP. As you can see, I'm slowly learning to navigate the different pitfalls.
I've paid off all my debts, and now have a good stash of emergency savings, and now its time to properly plan for retirement, which I haven't been doing for a while, so I'm trying to fix that now.
I've got an IRA in the US at Fidelity that I contributed to some years ago, and then stopped. Now I'm wondering if I should just keep working my retirement in that IRA, instead of opening a RRSP? It seems to me another dumb move for me to convert my money into CAD, then put it into a RRSP for retirement, when I could just put that money directly as USD into an IRA. Or is there something I'm not thinking of? Obviously there are differences between what you can do with an IRA and what you can do with a RRSP....but I'm wondering if I can deduct my IRA contributions from my Canadian taxes, like I would with a RRSP, or if I would deduct that from the US filings (and then get a refund?) Or are there other complications that I should be concerned about down the line? Or is there a better way for me to do this?
Any suggestions or ideas you have would be super helpful, I've tried to find information online about this, but it seems there is not so much information about my situation!