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what to do with RRSP in UK

what to do with RRSP in UK

Old Jan 20th 2019, 3:54 pm
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Default what to do with RRSP in UK

HI
I've done some digging around this but only a slight understanding so looking for some thoughts! My Canadian wife has approx $60k RRSP with TD, we currently live in UK, I am from UK, she has been here for 10 years and recently become UK citizen. Tax resident in UK for some years. She is 55, no income other than UK dividends, lower rate taxpayer. We are wondering what to do with this RRSP. My reading says she could withdraw it and have 25% withholding tax and pay UK tax on any gain in fund (I think, not sure how that's worked out and if its significant). Or, she could convert that to RRIF anytime from now to age 71 and take periodic withdrawals into UK with no tax incurred.
However, we have an outline plan to move to NS in about 6 years time and I'm wondering if that has any bearing on the decision? What might be good is if there was a way we could use this money to help buy in NS in the next year or two - but I don't think that's a possibility given what these funds are supposed to be for!
Is the above about right in terms of options? thanks
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Old Jan 20th 2019, 6:55 pm
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Default Re: what to do with RRSP in UK

https://www.canada.ca/en/revenue-age...yers-plan.html
The Home Buyers' Plan (HBP) is a program that allows you to withdraw up to $25,000 in a calendar year from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability.
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Old Feb 3rd 2019, 3:07 pm
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Default Re: what to do with RRSP in UK

coming back to this, thanks for the above, I guess that could be an option
So, two scenarios:

Scenario 1: if we remain in UK, we could
a) withdraw the RRSP and take a 25% hit into the UK and end up with approx £26k UK funds which we invest in pension or towards holiday property or something
b) convert the RRSP to RRIF and take minimum withdrawals each year so no tax paid in UK
Scenario 2: if we move to NS in 6 years time, we either
a) do as a) above
b) do as b) above
c) keep the money in the RRSP, move to NS, rent and become resident, then take $25k out through HBP, remained we convert to RRIF and withdraw min amounts
d) keep the money in the RRSP, move to NS, convert it to RRIF and take min payments

Just setting these out may it clearer in my head at least. Am I missing anything? And does any of the above sound particularly good or bad?
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Old Feb 3rd 2019, 3:18 pm
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Default Re: what to do with RRSP in UK

sorry, another related point, and forgive me as I don't fully understand how these work, but my wife actually has a number of RSPs and they don't seem to offer much in the way of interest.
There is one called a GIC RSP from TD which has 1% interest and matures in Jan 2020, there's another TD 1 year cashable GIC RSP at 0.4% which matures end Feb this month. These seem to be some sort of govt bonds I guess, what happens when they mature, do they automatically go somewhere unless you intervene?
There's another RRSP with Manulife which has lost 4.9% this year, but ok over longer term
and finally a "Basic RSP - Spousal" which has lost 8% last year and 32% since 2015!
We're looking to try and consolidate all this into the best place for a return!
If I should post this somewhere else, please let me know. Any advice gratefully received.
thanks.
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