US investment accounts while moving to canada

[canprofus]

No, I did not find a broker to move funds from US account to Canadian based brokerage accounts. I am not even sure how will this work, especially considering that USD to CAD conversion would apply. The best way might be to sell your stocks/funds and invest that hard cash in Canadian based brokerage account, and buy US based ETFs through that.

"How can you maintain job in US being in Canada?" --> This is a very broad question. Do you have any specifics related to this they you'd like me to answer?

some Canadian brokerages like Questrade, Interactive Brokers etc allow you keep funds in USD itself (funding through USD CAD account) and without needing to covert.

 

[sys1user]

Mind boggling amounts of ignorance on this thread. The question is not - which US brokers allow me to maintain accounts with canadian address. The question is - which US brokers allow me to maintain an account with canadian tax residency. Being specific helps resolve confusion.
It is not about mailing statements, it is about withholding taxes and tax reporting. Lol.

Fidelity allows accounts with CA tax residency but restricts some activities. If you want a fully functional brokerage which works across most country tax residencies, currencies, and accounts (401k, TFSA, RRP), go with IBKR and consolidate.

 

[canprofus]

Mind boggling amounts of ignorance on this thread. The question is not - which US brokers allow me to maintain accounts with canadian address. The question is - which US brokers allow me to maintain an account with canadian tax residency. Being specific helps resolve confusion.
It is not about mailing statements, it is about withholding taxes and tax reporting. Lol.

Fidelity allows accounts with CA tax residency but restricts some activities. If you want a fully functional brokerage which works across most country tax residencies, currencies, and accounts (401k, TFSA, RRP), go with IBKR and consolidate.

do you know what restrictions does Fidelity have? someone mentioned that they don't allow mutual funds alone, but ETFs and stocks are fully allowed.

 

[sys1user]

do you know what restrictions does Fidelity have? someone mentioned that they don't allow mutual funds alone, but ETFs and stocks are fully allowed.

This is mostly correct. Fidelity does not allow purchase of new mutual funds, but will allow you to keep any existing MF investments in your portfolio.
Certain leveraged stocks, options and ADRs may also be restricted.

 

[bboyking]

do you know what restrictions does Fidelity have? someone mentioned that they don't allow mutual funds alone, but ETFs and stocks are fully allowed.

The customer service agent said the same thing as you noted above and completely misled me. It turns out Fidelity does NOT support trading ETF, stocks, and mutual funds in individual brokerage accounts when your tax residency is changed to Canada. They allow you to only liquidate assets.

E-mail snippet from Fidelity:

What this means to you is that a restriction has been placed on your Fidelity nonretirement account(s). From this point forward, you are only permitted to sell the holdings in your account.You will be prohibited from purchasing any new position or making additional deposits of cash or securities.

 

[habibi123]

Mind boggling amounts of ignorance on this thread. The question is not - which US brokers allow me to maintain accounts with canadian address. The question is - which US brokers allow me to maintain an account with canadian tax residency. Being specific helps resolve confusion.
It is not about mailing statements, it is about withholding taxes and tax reporting. Lol.

Fidelity allows accounts with CA tax residency but restricts some activities. If you want a fully functional brokerage which works across most country tax residencies, currencies, and accounts (401k, TFSA, RRP), go with IBKR and consolidate.

This is very helpful. Do you know what would happen if I maintain Roth IRA with Fidelity/IBKR/Charles-Schwab after moving to Canada. Would they still allow active trading on the account? I guess not with Fidelity based on @bboyking information, but what about IBKR?

 

[sys1user]

This is very helpful. Do you know what would happen if I maintain Roth IRA with Fidelity/IBKR/Charles-Schwab after moving to Canada. Would they still allow active trading on the account? I guess not with Fidelity based on @bboyking information, but what about IBKR?

Schwab does not. They have a non-compete with Canada, effectively looking at max restrictions with them
Fidelity will allow you to trade most instruments (except mutual funds, which you can retain but not trade). YMMV based on the rep you get, but if you know their rules, you should be able to push back and get it right..
IBKR should be easiest. Their systems are setup to handle different and multiple citizenships, residencies, and tax obligations

 

[habibi123]

Schwab does not. They have a non-compete with Canada, effectively looking at max restrictions with them
Fidelity will allow you to trade most instruments (except mutual funds, which you can retain but not trade). YMMV based on the rep you get, but if you know their rules, you should be able to push back and get it right..
IBKR should be easiest. Their systems are setup to handle different and multiple citizenships, residencies, and tax obligations

Guess I'll prioritize IBKR. You said "Fidelity will allow you to trade most instruments", does that include US stock options?

 

[canprofus]

Guess I'll prioritize IBKR. You said "Fidelity will allow you to trade most instruments", does that include US stock options?

if stocks are not allowed, what is the whole point of having an account?

 

[habibi123]

if stocks are not allowed, what is the whole point of having an account?

I guess stocks are allowed, but I am wondering about options.

 

[sys1user]

I guess stocks are allowed, but I am wondering about options.

Options, futures, commodities, currencies - all allowed.
MFs - Sells allowed.
MF and ADR buys are restricted.

 

[desmat]

Mind boggling amounts of ignorance on this thread. The question is not - which US brokers allow me to maintain accounts with canadian address. The question is - which US brokers allow me to maintain an account with canadian tax residency. Being specific helps resolve confusion.
It is not about mailing statements, it is about withholding taxes and tax reporting. Lol.

Fidelity allows accounts with CA tax residency but restricts some activities. If you want a fully functional brokerage which works across most country tax residencies, currencies, and accounts (401k, TFSA, RRP), go with IBKR and consolidate.

Can I still open IBKR or Fidelity if I already moved to Canada?
I moved earlier but i was continuing US employer as work is remote....
But Now i am ending relationship as employee and moving forward as contractor...
So, I am wondering what to do with my 401K..
Also, does it matter if employment ends now or should i defer to end on 31-dec to avoid tax complications with 401k move to IRA etc or keep it as 401k when filing Canadian tax for 2021? This is because i am non-resident tax purpose of US and will be tax resident of Canada for 2021...
Please help and suggest...

 

[harirajmohan]

Can I still open IBKR or Fidelity if I already moved to Canada?
I moved earlier but i was continuing US employer as work is remote....
But Now i am ending relationship as employee and moving forward as contractor...
So, I am wondering what to do with my 401K..
Also, does it matter if employment ends now or should i defer to end on 31-dec to avoid tax complications with 401k move to IRA etc or keep it as 401k when filing Canadian tax for 2021? This is because i am non-resident tax purpose of US and will be tax resident of Canada for 2021...
Please help and suggest...

401k is tax exempted which you can claim as part of rrsp amount via the form for the amount for this year https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/rc268.html

Multiple options for 401k on what to do after leaving the job. But if the fund is growth fund and if you are allowed to keep it then you should just keep that account as it is or move to your new employer if your new employer's fund does well(or if you cant keep it in old employer).
Not a good idea to close it or withdraw the money unless its emergency.
https://www.investopedia.com/articles/personal-finance/112315/what-happens-401k-after-you-leave-your-job.asp

 

[mayple]

Can I still open IBKR or Fidelity if I already moved to Canada?
I moved earlier but i was continuing US employer as work is remote....
But Now i am ending relationship as employee and moving forward as contractor...
So, I am wondering what to do with my 401K..
Also, does it matter if employment ends now or should i defer to end on 31-dec to avoid tax complications with 401k move to IRA etc or keep it as 401k when filing Canadian tax for 2021? This is because i am non-resident tax purpose of US and will be tax resident of Canada for 2021...
Please help and suggest...

Any updates on what you ended up doing, if anything? Did you move your brokerage accounts or are you planning to keep them as is?

 

[swan0206]

Any updates on what you ended up doing, if anything? Did you move your brokerage accounts or are you planning to keep them as is?

If you have plans of moving back to USA within 3 or 4yrs , i was suggested not to touch anything and leave them as is because its really complicated to report in taxes on the US side and also it would be an issue if anything is missed by any chance. The CA i have reached out to told me not to do investments into stocks or mutual funds other than buying any house something like that. But i am still wanting to take a second opinion as many people have done this before but not sure if they had any issues after returning back or had any tax issues or any audits during their GC process!