One of the biggest concerns Canadians have when relocating to the United States is what happens to their registered accounts.

Can you keep them?

Should you close them?

Will they be taxed in the United States?

The answers vary depending on the account type, which is why planning before your move is critical.

RRSPs: Usually the Simplest Account to Keep

For most Canadians moving to the U.S., RRSPs are relatively straightforward.

Under the Canada-U.S. Tax Treaty, RRSP growth generally continues to receive favorable treatment at the federal level in the United States. However, some states do not recognize treaty provisions and may tax RRSP income differently.

While you can generally keep your RRSP after moving, new contributions are typically no longer beneficial once you become a U.S. resident.

Planning Opportunity

Before leaving Canada, consider maximizing RRSP contributions if it makes sense based on your income and available contribution room.

Locked-In Retirement Accounts (LIRAs)

LIRAs can generally remain open after you move to the United States.

In many provinces, non-residents may have opportunities to unlock LIRA funds after remaining a non-resident for a specified period.

The rules vary by province and should be reviewed carefully before making decisions.

TFSAs: The Account That Creates the Most Confusion

Many Canadians assume the Tax-Free Savings Account remains tax-free after moving to the United States.

Unfortunately, that is often not the case.

While the TFSA remains tax-free in Canada, the IRS generally does not recognize its tax-free status. Investment income, capital gains, and reporting obligations can create significant complexity.

Planning Opportunity

Although you are generally not required to close your TFSA before moving, many cross-border tax advisors recommend reviewing whether maintaining the account remains beneficial.

FHSAs: Great in Canada, Complicated in the U.S.

The First Home Savings Account provides attractive tax benefits in Canada, but its treatment in the United States is less favorable.

Investment growth and reporting obligations can create additional complexity once you become a U.S. resident.

For many individuals, reviewing FHSA strategy before moving is advisable.

RESPs and U.S. Tax Reporting

Registered Education Savings Plans often require special attention.

Although RESPs receive favorable treatment in Canada, the IRS may treat the account differently.

Government grants, investment income, and reporting requirements can create complications for U.S. residents.

Because of the complexity involved, RESPs should be reviewed as part of any comprehensive cross-border tax plan.

The Bottom Line

Registered accounts are often among the largest assets Canadians own.

Understanding how each account is treated before moving to the United States can help avoid unnecessary taxes, reduce reporting headaches, and create opportunities for better long-term planning.