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 '19 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 '19 at 18:29
  • Did you ask HR? To me that would be the first step. – Pete B. Feb 13 '19 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 '19 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.

| improve this answer | |
  • This really helped for now. – macnique Feb 13 '19 at 20:05

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.