Canadians Returning from US Employment

Many of our US-resident clients are actually Canadians who moved to the US to work and now want to return home to Canada. Perhaps their US employment contract has come to an end or an excellent employment opportunity has arisen in Canada. Other Canadians returning from US employment simply want to be closer to family and friends who live in Canada.

Regardless of the specific reason for moving back to Canada, Canadians returning from US employment often have similar questions. First, they wonder what to do with their US immigration status. If they had a Green Card, they wonder whether they should surrender it. If they held a work visa, questions about what to do with their visa also arise. Another common question is how quickly they will be able to once again access Canada’s health care system upon arrival north of the border.

Canadians returning from US employment also wonder whether they will be able to receive US Social Security payments if they move back to Canada. Typically, Canadians who have worked in the US have established US retirement accounts such as Individual Retirement Arrangements (“IRAs”), Roth IRAs, 401(k)s, 403(bs), and/or 457(b)s. How to handle these assets when moving back to Canada is another important consideration.

Cross-border tax questions are also primary. Canadians who have been working in the US may already be familiar with the fact that the US taxes its citizens and permanent residents on their worldwide income, regardless of residency. Canadians with US permanent residency status or dual citizenship who are moving back to Canada must therefore make sure that they are not caught in any cross-border tax traps.

As the above questions illustrate, making the decision to move back to Canada after working in the US necessitates careful pre-departure tax, estate, retirement, investment, and immigration planning. Keep reading for more information about these cross-border financial planning topics as they apply to Canadians returning from US employment.

Please note that the below information sometimes refers to “Americans” or “US persons”. These terms apply to i) Canadian citizens who are also American citizens; and ii) Canadian citizens who are also Green Card holders/US permanent residents.

Please also note that the topics covered below require detailed, comprehensive analysis before specific recommendations can be made to an individual client, which is the purpose of creating a cross-border financial plan prior to departure.

Explanation of US System

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Tax Traps for Americans Living in Canada

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Situs Wills, Trusts, and Power of Attorney Documents

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US Gift and Estate Tax

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Cash Flow Planning
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Canadian and US Pension Plans
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US Retirement Accounts and RRSP Withdrawals

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US Medicare

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The Canadian Health Care System

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Universal Life Insurance Policies

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Immigration Considerations for Canadians Returning from US Employment

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