I have been working in USA from past 15 years and now planning to move to Canada for the same company. So is there a 401k equivalent in Canada where i can continue contributing ? Or i can still contribute to US 401k while working in Canada ? Any suggestions ?

  • You're a Canadian or an American citizen? Are you planning to stay in Canada indefinitely, or is this just temporary for this job? How long, if temporary, is it likely to be? – Joe Feb 13 at 18:25
  • I am neither a Canadian or American. I belong to china. and yes this move is more than likely for 5 years. – macnique Feb 13 at 18:29
  • Did you ask HR? To me that would be the first step. – Pete B. Feb 13 at 18:32
  • Eventually i will but right now its too early to ask HR at this point of time ,so i am posting here. – macnique Feb 13 at 18:36

The Canadian retirement account is called an RRSP. Investopedia has a good introductory article on what an RRSP is. It's not exactly the same as a 401(k) or an IRA, but has some of the same elements of both, including (sometimes) employer matching contributions and tax benefits. You don't have to be a Canadian citizen, but you do have to be filing a Canadian tax return, among other requirements.

Whether this will be a good idea for you or not will depend on where you go afterward. The US and Canada, for example, have a treaty that governs how RRSP income is taxed; many other countries do as well, but not all. You may want to research whatever country you expect to move to next, and/or your country of citzenship (in your case, China), to see how they would tax an RRSP.

  • This really helped for now. – macnique Feb 13 at 20:05

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