Question For The Tax Planning and Investment Experts

[K Douglas]

Hey guys,

Thanks for the responses. What prompted my question is that I have been using Turbo Tax for a few years now and I don't remember getting the question about RRSPs and RRIFs until this year. I do have my own IRA to which both my employer and I make contributions, and I assumed that these plans are similar. I was just curious as to why Turbo Tax is asking me about them. I thought perhaps Americans were investing in them and maybe I was missing out on something here. It's good to know that I wasn't.

With the IRAs that we have in the USA, there is a steep penalty assessed if you withdraw any monies from the plan prior to age 59.5. Do the RRSPs and RRIFs have similar rules to discourage withdrawals?

I've used Turbo Tax before to prepare tax returns for Canadian residents who are US citizens. If I remember correctly I used the 1040 return for non residents. I can't understand you getting that question if you are using the form American residents use