# TFSA & U.S. residence



## nuke2uk (Nov 1, 2011)

Here is my situation:

Canadian citizen
$15,000 contributed to TFSA to date
Plan to contribute $5,000 (max allowance) to TFSA in 2012
Plan to move to U.S. as an American Permanent Resident in 2012 (have a green card)
With aim to one day return to Canada (to retire in 10-20 years), what should I do in the meantime regarding my fully invested positons in Canadian securities within my TFSA?

"Sell everything" is an easy option, but perhaps not ideal. The option to stay invested within the TFSA over the coming decade or more intrigues me with the tax-free growth. Obviously my contribution room will be locked until I regain Canadian residency, but this is OK.

I understand the U.S. position in terms of tax owing on foreign investments, but what is the Canadian position? Any TFSA gurus here? 

Anyone with insight into a situation similar to this please let me know. I would love to hear about it! Thanks everyone.

"Lawyer" is the taboo-word in this thread. Please don't type it!


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## kcowan (Jul 1, 2010)

IANAL but I would investigate the possibility of a rollover into a Roth IRA. Otherwise you are screwed.


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## Four Pillars (Apr 5, 2009)

For that small amount of money and the length of time you are planning to leave for (and realistically, might never come back), I would just withdraw everything from the TFSA before you go. 

It's not worth the hassle of keeping the account.


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## nuke2uk (Nov 1, 2011)

Thanks for the info gentlemen.

A full withdrawal is the safest play and likely my course of action unless something radical happens.


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## OhGreatGuru (May 24, 2009)

If the previous posts were not clear as to the reason, TFSA's are not recognized by the IRS as a tax-sheltered vehicle, unlike RRSP. So you would be taxed by the IRS on earnings in a TFSA while a US resident.


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