Wealth Management

Financial Planning and Investment Management for Americans Living in Canada and Canadians Living in the U.S.

Wealth Management in Canada and the United States

Organize your U.S. and Canadian financial assets to optimize growth, reduce taxes, and align with a cohesive cross-border financial plan.

Canada-U.S. Cross-Border Financial Planning

49th Parallel Wealth Management is a specialized Canada-U.S. cross-border financial planning firm dedicated to helping affluent U.S. citizens living in Canada manage their cross-border investment, tax, estate, retirement, and financial planning needs.

Options for U.S. IRA Account Holders Living in Canada

At 49th Parallel Wealth Management, one of the most common questions we receive is from clients wondering how to manage their U.S. retirement accounts after relocating to Canada. Many are surprised by the complexities surrounding their U.S.-based

Complimentary White Paper: Manage Your Canada-U.S. Cross-Border Lifestyle

Whether you’re planning a move between Canada and the United States or have already relocated, understanding the benefits of a cross-border financial strategy is essential. Learn how 49th Parallel Wealth Management can help you manage your investment assets and financial interests on both sides of the border.

Did You Know? As an American living in Canada, it is important to be aware of the following:

Taxable investment accounts (non-retirement accounts) must be Passive Foreign Investment Company (PFIC) compliant. The overwhelming majority of Canadian-traded mutual funds and ETFs are considered PFICs and should be avoided by all U.S. citizens. Holding PFICs can create very harsh U.S. income tax consequences
Canadian Tax-Free Savings Accounts (TFSAs) and Registered Education Savings Plans (RESPs) should not typically be opened because they are not granted tax-deferred status by the IRS and the foreign account disclosure reporting costs for these plans could outweigh the benefits.
A U.S. retirement account (e.g., 401(k), IRA) can be moved to your Canadian retirement account (e.g., Registered Retirement Savings Plan or RRSP) but in most cases, the tax consequences outweigh the benefits in doing so.
Your Canadian and U.S. investment accounts should be structured to complement one another in order to avoid duplication of investment costs and double taxation issues.
If you are accumulating money inside a Canadian retirement account such as an RRSP and plan to return to the U.S. one day, there are ways to apply currency management to your accounts and ultimately hold your RRSP in U.S. dollar investments.
Never leave your old U.S. address or a U.S. family member’s address on file as the address of record for your U.S.-based investments accounts. Always change them to your Canadian address. As a Canadian resident, make sure the correct amount of withholding tax is being applied. Otherwise, the IRS and CRA, who share information, could both challenge your residency status, leading to the threat of double taxation.
Continuing to hold assets inside a U.S. Trust when living in Canada can create Canadian tax issues
U.S. gift and estate tax rules apply when living in Canada and there are unique planning initiatives that address how to best gift assets to a non-U.S. spouse
Canadian small businesses/corporations are great wealth accumulation vehicles for Canadian residents but present challenges for those owned by U.S. citizens
Canada does have an exit (departure) tax, so planning ahead before moving to the U.S. is required

Moving to Canada?

As an American relocating to Canada, it’s essential to structure your financial affairs correctly to prevent double taxation and ensure compliance with the laws of both nations. Our experts offer guidance on a wide range of tax matters tailored to Americans living in Canada, including:

Steps to take to reduce taxes before becoming a resident of Canada
Additional U.S. tax filing requirements once you move to Canada
Necessary modifications to make your U.S. estate plan valid in Canada
Advice and oversight of investment accounts that remain in the U.S. and those that must be transferred to Canada based on compliance and regulatory rules.
What to do with your U.S. stock options and restricted stock units (RSUs)

Aside from the requirement that all U.S. citizens must annually file a U.S. tax return regardless of their residency, Americans should be aware that many of the tax and estate planning strategies that worked well for U.S. purposes may not work as well for them in Canada. Likewise, tax and estate planning strategies that are effective in Canada could complicate U.S. tax and estate planning.

Management of Canadian and U.S. investment accounts under an integrated platform
Advice on specific assets that should transfer to the U.S. or remain in Canada
Retirement planning and advice on retirement benefits such as CPP, OAS, Social Security and Medicare
Holistic advice on cross-border financial and estate planning
Creation of a cross-border transition and exit strategy between Canada and the U.S.

Tax preparation, foreign-based account disclosures and navigating the U.S.-Canada Tax Treaty
Assistance on cross-border asset transfers and currency conversions
Canadian and U.S. stock option and company bonus plan advice
Guidance on real estate and businesses located cross-border
Health, life, disability, long-term care, business and property insurance review

Why Work with a Cross-Border Advisor?

Finding an advisor licensed or authorized to provide financial advice on both sides of the U.S.-Canada border is no easy task. Few firms meet regulatory requirements or have the necessary structure in place. Even among those that do, it’s rare to find a team focused exclusively on Canada-U.S. cross-border financial planning. At 49th Parallel Wealth Management, we stand apart. Our service model and platform are specifically designed to support Canadians living in the U.S., U.S. citizens living in Canada, Canada-U.S. dual citizens, and American and Canadian expatriates worldwide. With our specialization in cross-border financial planning, we’re uniquely equipped to handle the complexities of your Canada-U.S. financial needs.

Understand the benefits of working with a 49th Parallel Wealth Management cross-border financial advisor

“49th Parallel Wealth Management” is the brand under which dedicated professionals within 49th Parallel Wealth Management, ULC provide financial, tax and investment advisory, risk management, financial planning and tax services to selected clients. 49th Parallel Wealth Management, ULC is a US registered investment advisor and a registered portfolio manager in Canada (ON, QC, MB, PEI, SK, NS, NB, AB, BC, PEI). Advisory services are only offered to clients or prospective clients where 49th Parallel Wealth Management and its representatives are properly registered or exempt from registration. This brochure is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital.