Cross-Border Investment Handbook: executive summary
A quick guide for Americans moving to Canada with roughly $1M or more in investable assets: the key risks, the fixes and a timeline.
At a glance
- Why it matters: Most U.S. firms cannot serve you once you become a Canadian resident. Without preparation, accounts risk being frozen or liquidated.
- Solution: Use a dually licensed cross-border platform that can manage both U.S. and Canadian accounts, in USD and CAD.
Key risks and fixes
- Forced liquidation: Transfer accounts in kind before the move.
- Double taxation: Time bonuses, options or Roth conversions before Canadian residency.
- Frozen retirement accounts: Keep IRAs and 401(k)s on a cross-border platform.
- PFIC exposure: Avoid Canadian mutual funds and ETFs in U.S.-taxable accounts.
- FX costs: Hold USD and CAD side by side; convert only when needed.
Action timeline
- Pre-move (90 days): Engage a cross-border CPA, plan income timing, open CAD and USD accounts.
- First 120 days: Eliminate PFICs, confirm reporting, build a CAD cash buffer. Transfer accounts in kind, update estate documents, file U.S. forms.
- First year: Coordinate Canadian tax filing, set a withdrawal strategy, schedule an annual review.
Quick checklist
- Confirm residency date with your CPA.
- Transfer brokerage and retirement accounts before they freeze.
- Review beneficiaries and wills in both countries.
- Build one compliance calendar: FBAR, FATCA, PFIC, T1135.
Bottom line: plan early, avoid surprises, and keep one coordinated cross-border strategy.
Sources and further reading
- CRA, Newcomers to Canada and the CRA
- IRS Form 8621, Information Return by a Shareholder of a PFIC
- IRS, Report of Foreign Bank and Financial Accounts (FBAR)
- IRS Form 8938, Statement of Specified Foreign Financial Assets (FATCA)
- CRA Form T1135, Foreign Income Verification Statement
Related resources
Have a situation like this one?
Tell us what you need and we will introduce you to a professional who works across the border every day.
Chris is a cross-border financial advisor licensed in both Canada and the United States. He helps Americans moving to Canada and Canadians moving to the U.S. keep their retirement accounts intact and build one plan that covers both sides of the border. He writes for Cross Border Wealth in his personal capacity.
Disclosure: Chris writes in his personal capacity; his views do not represent any firm he is associated with. Cross Border Wealth does not provide advisory services. If you need advice, use the Get connected form and we will introduce you to a licensed professional.