Blog Country Specific Expat Tax Situations

Canadian Retirement Programs for U.S. Citizens: Complete Tax Guide

If you’re a U.S. citizen living or working in Canada, you’ll be relieved to know you can participate in Canadian retirement programs just like Canadian citizens. According to Canada’s official retirement benefits guidelines, the Canada Pension Plan (CPP) requires contributions from everyone employed in Canada over age 18, regardless of citizenship. For the 2025 tax year, the maximum CPP retirement pension is CAD $1,433 monthly at age 65, while Old Age Security provides up to CAD $740 monthly for those aged 65-74.

What makes Canadian retirement programs unique for Americans is how they’re taxed across both countries. The U.S.-Canada tax treaty provides specific protections that typically prevent double taxation, but the rules vary significantly depending on which program you’re using and where you live when receiving benefits. From mandatory public pensions like CPP to tax-advantaged savings plans like RRSPs and TFSAs, each program comes with distinct U.S. tax implications that require careful planning.

Quick Overview: Canadian Retirement Programs for Americans

Program Type	Program Name	Eligibility for U.S. Citizens	U.S. Tax Treatment	Priority Level
Public Pension	Canada Pension Plan (CPP)	✓ Mandatory if working	Favorable treaty protection	High
Public Pension	Old Age Security (OAS)	✓ Based on residency	Favorable treaty protection	High
Private Savings	RRSP	✓ Available to all residents	Tax-deferred (good)	High
Private Savings	RRIF	✓ RRSP conversion at 71	Tax-deferred (good)	High
Private Savings	TFSA	✓ Available but problematic	Fully taxable (avoid)	Low
Education	RESP	✓ Available but complicated	Fully taxable	Low
Housing	FHSA	✓ Available but complicated	Fully taxable	Low
Employer	RPP Plans	✓ Through employment	Generally favorable	Medium-High

Do U.S. Citizens Qualify for Canadian Retirement Programs?

Yes, U.S. citizens living in Canada qualify for most Canadian retirement programs based on the same criteria as Canadian citizens. Citizenship is not a barrier to participation in Canada’s retirement system.

What Programs Can I Access?

Public Programs (Mandatory/Automatic):

Canada Pension Plan (CPP): Mandatory if you work in Canada
Old Age Security (OAS): Based on years of Canadian residence
Guaranteed Income Supplement (GIS): For low-income OAS recipients

Private Registered Plans (Voluntary):

RRSP: Tax-deferred retirement savings (favorable for Americans)
RRIF: Retirement income fund (RRSP conversion)
TFSA: Tax-free in Canada, but fully taxable for Americans
RESP: Education savings (complicated for Americans)
FHSA: First home savings (complicated for Americans)

Employer Plans:

Defined Benefit Pensions: Traditional employer pensions
Defined Contribution Plans: Similar to U.S. 401(k)s

Not Sure How Your CPP, OAS, or RRSPs Will Be Taxed? We’ll Clarify It

Share a few details about your CPP, OAS, RRSPs, and U.S. retirement plans, and we’ll map out how the treaty applies so you don’t pay more tax than required in either country.

Key Eligibility Factors

Program	Citizenship Required?	What Matters Instead
CPP/QPP	No	Employment in Canada + contributions
OAS	No	Years of Canadian residence after age 18
GIS	No	Canadian residence + low income
RRSP/RRIF	No	Canadian tax residency + SIN
TFSA	No	Canadian tax residency + SIN + age 18+
Employer Plans	No	Employment with participating employer

Take Note

While you qualify for these programs, the U.S. tax treatment varies dramatically. Some receive favorable treaty protection (like RRSPs), while others create tax complications for Americans (like TFSAs). Your citizenship requires you to report these accounts to the IRS, even when they provide tax benefits in Canada.

The U.S.-Canada totalization agreement also coordinates social security systems between both countries, ensuring your Canadian work credits can help you qualify for U.S. Social Security benefits and vice versa.

Canadian Public Retirement Programs

Canada’s public retirement system provides guaranteed income through government-sponsored programs. These form the foundation of retirement planning for anyone living in Canada, including U.S. citizens.

Canada Pension Plan (CPP)

The Canada Pension Plan operates similarly to U.S. Social Security as a mandatory, earnings-based pension system.

How CPP Works

Basic Structure:

Mandatory for all Canadian workers (including U.S. citizens)
Contribution-based benefit system
Portable across Canada (except Quebec has QPP)
Benefits based on lifetime contributions and earnings

2025 Contribution Rates:

Worker Type	Contribution Rate	Maximum Annual Contribution
Employee	5.95% of earnings	CAD $4,055
Employer	5.95% of earnings	CAD $4,055
Self-Employed	11.90% of earnings	CAD $8,110

Earnings Thresholds:

Minimum earnings for contributions: CAD $3,500
Maximum pensionable earnings: CAD $71,300
You contribute only on earnings between these amounts

CPP Benefit Amounts (2025)

Age When Benefits Start	Maximum Monthly Benefit	Average Monthly Benefit	Reduction/Increase
Age 60 (early)	CAD $917	CAD $576	-36% reduction
Age 65 (standard)	CAD $1,433	CAD $900	Standard amount
Age 70 (delayed)	CAD $2,035	CAD $1,278	+42% increase

Strategic Timing Matters:

Taking CPP early at age 60 reduces benefits by 0.6% per month (36% total)
Delaying to age 70 increases benefits by 0.7% per month (42% total)
You can work while receiving CPP and earn additional credits until age 70

CPP Eligibility Requirements

✓ Age 60 or older ✓ Made at least one valid CPP contribution ✓ Filed an application for benefits

That’s it. If you worked in Canada and contributed to CPP, you qualify regardless of citizenship.

U.S. Tax Treatment for CPP

Where You Live Determines Taxation:

Your Residence	How CPP is Taxed
U.S. Resident	• Taxed ONLY in U.S. <br>• Treated as U.S. Social Security <br>• Up to 85% taxable <br>• No Canadian withholding
Canadian Resident	• Taxed ONLY in Canada <br>• Fully taxable at marginal rate <br>• Report on U.S. return but claim treaty exemption <br>• File Form 8833 to document exemption

For complete details on reporting, see our guide on how Canadian pensions are taxed in the U.S.

Quebec Pension Plan (QPP)

The Quebec Pension Plan is Quebec’s equivalent to CPP, operating under nearly identical rules with slightly different contribution rates.

Key Points:

Applies to workers in Quebec instead of CPP
Contribution rates: 6.40% for employees/employers (2025)
Maximum monthly benefit: CAD $1,433 (same as CPP)
If you worked in both Quebec and other provinces, benefits are consolidated

U.S. Tax Treatment: Identical to CPP treatment described above.

Old Age Security (OAS)

Old Age Security differs fundamentally from CPP because it doesn’t require employment or contributions. OAS is funded by general tax revenue and based solely on Canadian residence.

How OAS Works

Core Differences from CPP:

No contributions required
No employment required
Based entirely on years of residence in Canada
Funded through general taxation
Residence-based, not earnings-based

OAS Benefit Amounts (2025)

Age Group	Maximum Monthly Benefit	Annual Amount
Ages 65-74	CAD $740.09	CAD $8,881
Ages 75+	CAD $814.10	CAD $9,769

Note: Automatic 10% increase at age 75 (introduced in 2022)

OAS Eligibility Requirements

If You Live…	Residence Requirement	Citizenship Requirement
In Canada	10 years after age 18	Canadian citizen OR legal resident
Outside Canada	20 years after age 18	Canadian citizen OR legal resident on day before you left

Partial vs. Full Benefits:

Full OAS requires 40 years of Canadian residence after age 18
Partial OAS paid based on your actual years (1/40th per year)
Minimum 10 years required if living in Canada
Minimum 20 years required if living outside Canada

The OAS Clawback (Recovery Tax)

If your worldwide income is too high, Canada claws back your OAS benefits.

2025 Clawback Thresholds:

Income Level	What Happens
Under CAD $90,997	No clawback – keep full OAS
CAD $90,997 – $148,000	Partial clawback (15% of excess income)
Over CAD $148,000	Complete clawback – no OAS

Example: Your income is CAD $100,000. You’re CAD $9,003 over the threshold. Your OAS is reduced by CAD $1,350 annually (15% of $9,003).

Clawback Planning Strategies:

Income split with lower-income spouse
Strategic RRSP withdrawals before age 71
Using TFSA for non-taxable income (though problematic for Americans)
Timing of investment income

U.S. Tax Treatment for OAS

Identical Treatment to CPP:

Your Residence	How OAS is Taxed
U.S. Resident	• Taxed ONLY in U.S. <br>• Treated as U.S. Social Security <br>• Up to 85% taxable
Canadian Resident	• Taxed ONLY in Canada <br>• Fully taxable <br>• File Form 8833 with U.S. return

Guaranteed Income Supplement (GIS)

GIS provides additional support for low-income OAS recipients living in Canada.

2025 Maximum Benefits:

Status	Maximum Income to Qualify	Maximum Monthly GIS
Single	CAD $21,624	CAD $1,086
Couple (both receive OAS)	CAD $28,560	CAD $654 each
Couple (one receives OAS)	CAD $51,888	CAD $1,086

Important Limitations:

Available ONLY to Canadian residents
Not paid if living outside Canada
U.S. citizens living in Canada can qualify

U.S. Tax Treatment: Similar to OAS, but only relevant for those remaining Canadian residents.

Canadian Registered Retirement Savings Plans

Beyond government pensions, Canada offers tax-advantaged retirement savings accounts. These registered plans provide benefits under Canadian law, but their U.S. tax treatment varies dramatically.

RRSP vs. TFSA vs. RESP: Quick Comparison for Americans

Feature	RRSP	TFSA	RESP
Canadian Tax Benefit	Deductible contributions	Tax-free growth	Government grants
U.S. Tax Treatment	✓ Tax-deferred (favorable)	✗ Fully taxable (bad)	✗ Fully taxable (bad)
Treaty Protection	Yes	No	No
Recommended for Americans?	YES – Highly Recommended	NO – Avoid	NO – Usually Avoid
Annual Limit (2025)	CAD $32,490 or 18% of income	CAD $7,000	CAD $50,000 lifetime

Registered Retirement Savings Plans (RRSP)

RRSPs are Canada’s equivalent to U.S. traditional IRAs and 401(k)s, and they’re the best tax-advantaged option for U.S. citizens in Canada thanks to favorable treaty treatment.

How RRSPs Work

Basic Structure:

Tax-deductible contributions in Canada
Tax-deferred investment growth
Taxable withdrawals in retirement
Must convert to RRIF or annuity by age 71

2025 Contribution Limits:

Contribution Type	Limit
Annual contribution room	18% of prior year’s earned income
Maximum contribution (2025)	CAD $32,490
Unused room	Carries forward indefinitely
Spousal RRSP contribution	Counts toward your limit

What’s Earned Income?

Employment income
Self-employment income
Rental income from property
Royalties
Research grants
Disability pension

Special RRSP Withdrawal Programs

Home Buyers’ Plan (HBP):

Withdraw up to CAD $60,000 tax-free for first home purchase
Must repay over 15 years
Starts 2 years after withdrawal

Lifelong Learning Plan (LLP):

Withdraw up to CAD $20,000 tax-free for education
Must repay over 10 years
Starts 5 years after withdrawal or when education ends

RRSP Conversion at Age 71

Your Options:

Option	How It Works	Tax Impact	Best For
Convert to RRIF	Mandatory annual withdrawals	Taxed as withdrawn	Most people
Buy an Annuity	Fixed lifetime payments	Taxed as received	Guaranteed income
Lump-Sum Withdrawal	Withdraw everything	Heavily taxed immediately	Rarely recommended

U.S. Tax Treatment for RRSPs

The Good News: RRSPs receive favorable tax-deferred treatment under the U.S.-Canada tax treaty.

How It Works:

What Happens	Canadian Tax	U.S. Tax
Contributions	Tax-deductible	Generally not deductible*
Growth	Tax-deferred	Tax-deferred (treaty protection)
Withdrawals	Fully taxable	Fully taxable
Foreign Tax Credit	N/A	Available for Canadian tax paid

*If using FEIE to exclude Canadian salary, the missed U.S. deduction has minimal impact.

Key Benefits:

✓ No annual Form 8891 required since 2014
✓ Automatic treaty election (Revenue Procedure 2014-55)
✓ Tax-deferred growth recognized by IRS
✓ Foreign Tax Credit typically eliminates double taxation on withdrawals

Reporting Requirements:

Must report on FBAR if accounts total $10,000+
Must report on Form 8938 if meets FATCA thresholds
No Forms 3520/3520-A required

Real Example: David contributes CAD $15,000 to his RRSP while working in Toronto. He deducts this on his Canadian return, saving CAD $5,250 in Canadian tax (35% bracket). On his U.S. return, he’s already excluding his salary using FEIE, so the non-deductibility doesn’t cost him. His RRSP grows tax-free for both countries. When he withdraws CAD $50,000 years later, Canada withholds 25% (CAD $12,500). On his U.S. return, his tax on $36,500 is about $8,000, but he claims $8,000 in Foreign Tax Credits, resulting in $0 additional U.S. tax.

For complete RRSP guidance, see our detailed RRSP guide for U.S. expats.

Registered Retirement Income Funds (RRIF)

A RRIF is an RRSP converted to provide retirement income through mandatory annual withdrawals.

How RRIFs Work

Conversion Process:

Must convert RRSP by December 31 of year you turn 71
Can convert earlier voluntarily (as early as age 55)
No tax on conversion itself
Assets transfer directly from RRSP to RRIF

Mandatory Withdrawal Schedule (2025):

Age	Minimum Withdrawal %
71	5.28%
72	5.40%
75	5.82%
80	6.82%
85	8.51%
90	11.92%
95+	20.00%

Example: Your RRIF has CAD $200,000 at age 72. You must withdraw minimum CAD $10,800 (5.40%). You can withdraw more, but can’t withdraw less.

Withholding Tax on Excess Withdrawals

Withdrawal Amount	Withholding Rate
Up to minimum	0%
Over minimum up to CAD $5,000	10%
Over minimum CAD $5,001-$15,000	20%
Over minimum above CAD $15,000	30%

U.S. Tax Treatment for RRIFs

Identical to RRSPs:

✓ Continued tax-deferral on growth
✓ Withdrawals taxed when received
✓ Foreign Tax Credit available
✓ Same FBAR/FATCA reporting

Tax-Free Savings Accounts (TFSA)

⚠️ CRITICAL WARNING: TFSAs are tax-free in Canada but create significant tax complications for U.S. citizens.

How TFSAs Work in Canada

What Canadians Get:

No tax deduction for contributions
Completely tax-free growth
Completely tax-free withdrawals
Annual contribution limit: CAD $7,000 (2025)
Unused room carries forward
No age limit or conversion requirement

Sounds Perfect, Right? Not for Americans.

The Problem for U.S. Citizens

U.S. Tax Treatment:

What Happens in Canada	What Happens for U.S. Taxes
Tax-free investment growth	✗ Fully taxable annually
Tax-free dividends	✗ Fully taxable as dividends
Tax-free interest	✗ Fully taxable as interest
Tax-free capital gains	✗ Fully taxable as gains
No tax on withdrawals	Already taxed the income
No Foreign Tax Credit	Can’t claim credit (no Canadian tax paid)

Why It’s Bad:

No treaty protection for TFSAs
All income taxed annually by IRS
No Foreign Tax Credit available (because Canada doesn’t tax it)
Must report on FBAR
May require Form 8938
Complex annual calculations

Real Example: Sarah has CAD $50,000 in her TFSA earning 5% annually (CAD $2,500). In Canada, she pays $0 tax. For U.S. taxes, she reports US $1,850 as taxable income and pays approximately $450 in U.S. tax with no offset. The “tax-free” account costs her $450 annually.

Our Recommendation: Most U.S. citizens in Canada should avoid TFSAs and use taxable investment accounts or maximize RRSP contributions instead.

Read our complete guide: TFSA Consequences for Americans in Canada

Registered Education Savings Plans (RESP)

RESPs help families save for children’s education with government matching contributions.

How RESPs Work

Basic Structure:

Parents contribute for child’s post-secondary education
Government matches 20% through Canada Education Savings Grant (CESG)
Maximum CESG: CAD $500 annually, CAD $7,200 lifetime
Tax-deferred growth
Withdrawals for education taxable to student (low tax rate)

U.S. Tax Treatment for RESPs

The Problem:

✗ No treaty protection
✗ All income taxable annually
✗ Government grants also taxable
✗ Must report on FBAR/FATCA
✗ Complex tracking required

Is It Worth It? Usually no. The 20% government grant may not offset the extra U.S. tax compliance costs and annual taxation of growth, especially if the child is also a U.S. citizen.

First Home Savings Account (FHSA)

Introduced in 2023, the FHSA combines RRSP and TFSA features for first-time homebuyers.

How FHSAs Work

Structure:

Tax-deductible contributions (like RRSP)
Tax-free withdrawals for first home (like TFSA)
Annual limit: CAD $8,000
Lifetime limit: CAD $40,000
Must use within 15 years or transfer to RRSP

U.S. Tax Treatment for FHSAs

Same Problem as TFSAs:

✗ No treaty protection
✗ All income taxable annually
✗ Withdrawals not tax-free for U.S. purposes
✗ Must report on FBAR/FATCA

Employer-Sponsored Pension Plans

Many Canadian employers offer registered pension plans (RPPs) providing retirement income based on service and earnings.

Defined Benefit Plans

How They Work

Traditional Pension Model:

Employer funds and manages the plan
Guaranteed monthly benefit in retirement
Formula typically: Years of Service × Average Salary × Benefit Rate
Employer bears all investment risk
Often indexed to inflation

Common Formula Example:

2% × Years of Service × Average Best 5 Years Salary
30 years service, CAD $80,000 average = CAD $48,000 annual pension (60% replacement)

U.S. Tax Treatment

Your Residence	Tax Treatment
U.S. Resident	• Taxable only in U.S. <br>• Canadian withholding limited to 15% <br>• Claim Foreign Tax Credit
Canadian Resident	• Taxable in Canada <br>• Report on U.S. return with treaty exemption <br>• File Form 8833

Defined Contribution Plans

How They Work

401(k)-Style Structure:

Employee and employer contributions
Individual investment accounts
Retirement benefit depends on account balance
Employee bears investment risk
More portable than defined benefit plans

U.S. Tax Treatment

Similar to RRSPs:

✓ Tax-deferred growth under treaty
✓ Contributions grow tax-free
✓ Withdrawals taxable
✓ FBAR/FATCA reporting required

Coordinating Canadian and U.S. Retirement Benefits

Many Americans in Canada have worked in both countries and accumulated retirement benefits in both systems. The totalization agreement helps coordinate these benefits.

How the Totalization Agreement Works

The U.S.-Canada Totalization Agreement prevents double social security taxation and helps you qualify for benefits in both countries.

Qualifying for Benefits

If You Don’t Have Enough Credits in One Country:

Your Situation	How Totalization Helps
20 U.S. credits, but need 40	Canadian CPP credits help you reach 40 U.S. credits
5 years Canadian CPP, need more	U.S. Social Security credits count toward CPP qualification
Split career between countries	Combines work history from both countries

Important

Benefits are always prorated based on actual work in each country. If you use Canadian credits to qualify for U.S. Social Security, your U.S. benefit is calculated based only on your actual U.S. earnings.

Avoiding Double Taxation During Working Years

If You Work in Canada:

Employment Type	Which System You Pay Into
Employee in Canada	CPP only (not U.S. self-employment tax)
Self-employed in Canada	CPP only (get Certificate of Coverage)
Employee of U.S. company temporarily in Canada	May continue U.S. Social Security (time limits apply)

For details on self-employment tax and totalization, see: Do U.S. Expats Pay Self-Employment Tax?

Yes, You Can Receive Both: The totalization agreement coordinates contributions, but you can receive full benefits from both countries.

Taxation of Dual Benefits:

Benefit Source	If You Live in U.S.	If You Live in Canada
U.S. Social Security	Taxable in U.S. (up to 85%)	Taxable in Canada (85% taxable)*
Canadian CPP	Taxable in U.S. (up to 85%)	Taxable in Canada (100% taxable)
Canadian OAS	Taxable in U.S. (up to 85%)	Taxable in Canada (100% taxable)

*15% treaty exemption on U.S. Social Security in Canada

Windfall Elimination Provision (WEP) – ELIMINATED January 2025

Old Rule (Before 2025):

WEP reduced U.S. Social Security if you received CPP/QPP
Could reduce benefits by up to 50%
Required 30 years of “substantial” U.S. earnings to avoid

New Rule (After January 2025): ✓ The Social Security Fairness Act eliminated WEP ✓ You can now receive full benefits from both countries ✓ No more reductions or offsets ✓ Applies retroactively to eligible recipients

This is a significant win for cross-border workers who built retirement in both countries.

Tax Filing Requirements for U.S. Citizens Living in Canada

Your U.S. citizenship requires worldwide income reporting and foreign account disclosure, regardless of where you live.

Annual U.S. Tax Return Filing

Who Must File

Filing Thresholds (2025 Tax Year):

Filing Status	Age	Gross Income Threshold
Single	Under 65	$14,600
Single	65 or older	$16,550
Married Filing Jointly	Both under 65	$29,200
Married Filing Jointly	One 65+	$30,750
Married Filing Jointly	Both 65+	$32,300

What to Report:

All Canadian employment income
CPP and OAS benefits (if U.S. resident)
RRSP/RRIF withdrawals
TFSA, RESP, FHSA income
Canadian pension benefits
Investment income
Rental income
All other worldwide income

Using Foreign Tax Credit or FEIE

Two Main Strategies to Avoid Double Taxation:

Strategy	Best For	How It Works
Foreign Tax Credit (FTC)	High Canadian tax rates	Dollar-for-dollar credit for Canadian taxes paid
Foreign Earned Income Exclusion (FEIE)	Working abroad	Exclude up to $130,000 of earned income (2025)

Most Americans in Canada Benefit More from FTC because Canadian tax rates typically exceed U.S. rates, often eliminating U.S. tax liability completely.

Learn more: Foreign Tax Credit Guide

FBAR Reporting (FinCEN Form 114)

What Requires FBAR Filing

File FBAR If: Your Canadian financial accounts (combined) exceed $10,000 at ANY point during the year.

Accounts That Count: ✓ Bank accounts (checking, savings) ✓ Investment accounts ✓ RRSPs ✓ RRIFs ✓ TFSAs ✓ RESPs ✓ FHSAs ✓ Employer pension accounts with cash value ✓ Any other financial accounts

FBAR Penalties

Violation Type	Penalty Amount
Non-willful	Up to $12,921 per violation
Willful	Greater of $129,210 or 50% of account balance

Deadline: April 15 (automatic extension to October 15)

Take Note: Even if you owe $0 in taxes, FBAR is still required if accounts exceed $10,000. Many Americans don’t realize RRSPs and other retirement accounts must be reported.

Learn when to report: Do I Need to Report My RRSP on FBAR?

FATCA Reporting (Form 8938)

Who Must File Form 8938

Threshold Amounts (Living Abroad):

Filing Status	On Last Day of Year	At Any Time During Year
Single	$200,000	$300,000
Married Filing Jointly	$400,000	$600,000

What to Report:

Foreign financial accounts
Foreign stock and securities
Interest in foreign entities
Foreign partnership interests

Key Difference from FBAR:

FATCA has higher thresholds
Filed with your tax return (not separately)
Includes broader asset categories
Separate penalties for non-filing

Strategic Planning for U.S. Citizens in Canadian Retirement Programs

Effective retirement planning requires coordinating both countries’ tax systems to minimize lifetime tax burden.

Priority Ranking: Which Accounts to Use

Recommended Strategy for Americans in Canada:

Priority	Account Type	Why	Annual Action
1st	RRSP	✓ Favorable treaty treatment ✓ Tax-deferred growth ✓ Foreign Tax Credit on withdrawal	Max out contributions
2nd	Employer RPP	✓ Free employer match ✓ Similar treaty treatment to RRSP	Take full employer match
3rd	Taxable Accounts	• Clear tax treatment • No treaty complications	For additional savings
4th	TFSA	✗ Annually taxable for Americans ✗ No Foreign Tax Credit ✗ Complex reporting	Avoid if possible
5th	RESP/FHSA	✗ Annually taxable ✗ Government grants also taxed	Usually avoid

Timing CPP and OAS Benefits

Should I Take Benefits Early, On Time, or Late?

Financial Breakeven Analysis:

Start Age	Monthly Benefit (CPP)	Breakeven vs Age 65
Age 60	CAD $917 (-36%)	Breakeven at age 74
Age 65	CAD $1,433 (standard)	Baseline
Age 70	CAD $2,035 (+42%)	Breakeven at age 82

When to Take Early (Age 60-64):

You need the income now
Poor health or shorter life expectancy
No other retirement savings
Want to invest the payments

When to Delay (Age 70):

Healthy with family longevity
Have other retirement income (RRSP, savings)
Still working and earning income
Want maximum lifetime benefits

Strategic Approach: If you have RRSP savings, consider using RRSP withdrawals to fund early retirement while delaying CPP/OAS to age 70 for 42% higher lifetime benefits.

Withdrawal Sequencing in Retirement

Optimal Order to Minimize Taxes

General Strategy:

Taxable Accounts First (preferential capital gains treatment)
RRSP/RRIF Strategically (fill lower tax brackets before mandatory RRIF withdrawals)
Delay CPP/OAS (maximize lifetime benefits with 42% increase)
Coordinate with U.S. Accounts (if you have 401(k)/IRA, sequence to avoid bracket jumps)

Example Strategy – Ages 60-70:

Age 60-65: Withdraw from taxable accounts + modest RRSP withdrawals
Age 65-69: Continue RRSP withdrawals, delay CPP/OAS
Age 70: Start CPP/OAS at maximum rates
Age 71+: RRSP converts to RRIF with mandatory withdrawals

Planning for Residency Changes

If You Plan to Return to the U.S.

Tax Treatment Changes Dramatically:

Program	While Canadian Resident	After Moving to U.S.
CPP/OAS	Taxable only in Canada	Taxable only in U.S.
RRSP/RRIF Withdrawals	Canadian tax + U.S. treaty exemption	U.S. tax + FTC for Canadian withholding
Canadian Pensions	Canadian tax + U.S. treaty exemption	U.S. tax + FTC for Canadian withholding

Pre-Move Planning:

Consider timing of large RRSP withdrawals
Understand Canadian departure tax (doesn’t apply to RRSPs)
Review state tax implications if moving to specific U.S. state
Plan RRIF conversion timing

For complete guidance: U.S. Expat Tax Guide for Living in Canada

Get Expert Help With Canadian Retirement Tax Planning

The interaction between Canadian retirement programs and U.S. tax law creates complexity that benefits from professional guidance.

Why Choose Greenback for Canada-U.S. Tax Filing

Our Canada Expertise:

✓ Dual filing coordination with Canadian tax partners
✓ RRSP and RRIF withdrawal strategies
✓ CPP/OAS treaty benefit optimization
✓ FBAR and FATCA compliance
✓ Totalization agreement navigation
✓ Cross-border retirement planning

How It Works:

Upload documents once to our secure portal
We coordinate with Canadian tax partners
We handle both U.S. and Canadian returns seamlessly
You get peace of mind knowing taxes were done right

Whether You’re:

Contributing to CPP and RRSPs
Planning RRIF withdrawals
Coordinating Canadian and U.S. retirement benefits
Catching up on late filings
Optimizing tax strategies across borders

We Can Help. No matter how complex your Canada-U.S. tax situation may be, you’ll have peace of mind knowing your taxes were done right.

If you’re ready to be matched with a Greenback accountant, click the Get Started button below. For general questions on US expat taxes or working with Greenback, contact our Customer Champions.

Let Greenback Coordinate Your Canada–U.S. Retirement Tax Filing

We work directly with trusted Canadian tax partners to prepare both returns, apply treaty provisions, and report your CPP, OAS, RRSPs, and RRIFs correctly every year.

This article provides general tax information for educational purposes. Tax laws are complex and change frequently, and the Canada-U.S. tax treaty contains numerous specific provisions. Canadian retirement program rules also change periodically. Always consult with qualified tax professionals who specialize in U.S.-Canada cross-border taxation and qualified financial advisors before making major retirement planning decisions.