Doctor Relocating to the US

 

Unfortunately for Canada, a lot of our best talent gets recruited to the US. This “brain drain” phenomenon continues to occur in the medical profession as many Canadian doctors move south for more attractive compensation and better tax structures. Some Canadian doctors also want to stay in the US after completing a fellowship south of the border.

Recent changes to the Canadian tax rules regarding holding companies makes moving south of the border particularly attractive for doctors. But moving south poses questions about what to do with a Canadian holding company once a doctor becomes a US resident. Canadian doctors moving to the US also wonder what to do with their medical corporations (or operating companies) once they are stateside. Canadian departure tax and other tax issues must be considered when answering these questions.

In addition to questions surrounding cross-border tax, Canadian doctors moving to the US may also have immigration questions; for example, while many doctors move to the US under a visa such as the H-1B, they ultimately desire permanent residency. The pathway to permanent residency is another important area to analyze for Canadian doctors moving south.

Which US retirement account to open is yet another question faced by Canadian doctors moving to the US, who typically require guidance on US retirement plans such as the 403(b) and the 457.

As the above questions illustrate, making the decision to move to the US necessitates careful pre-departure tax, immigration, and retirement planning. Canadian doctors relocating to the US must also be familiar with potential cross-border tax filing requirements, US estate planning and investment opportunities, and how to obtain optimal health insurance coverage for themselves and their families.

Keep reading for more information about these cross-border financial planning topics as they apply to Canadian doctors who are moving to the US. Please 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.

 

 

Canadian Corporations

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Departure Tax
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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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Registered Retirement Savings Plan (“RRSP”)
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US Retirement Plans: 403(b)s and 457s

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The Health Care System in the US

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Employer Program and Medicare Eligibility

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Life Insurance Issues
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Permanent Residency and Visas

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