Post-Move Action: your first 120 days in Canada
The first four months set the tone. Get accounts stable, filings on track and currency under control.
At a glance
- Why it matters: The first 120 days set the tone. Without action, you risk PFIC exposure, missed filings and FX surprises.
- Solution: Transfer accounts in kind, clean up portfolios, build reporting calendars and stabilize cash flow.
Key risks and fixes
- Frozen accounts: Confirm trading access immediately after the move.
- PFIC exposure: Replace Canadian mutual funds and ETFs in U.S.-taxable accounts with U.S.-friendly holdings.
- Missed filings: Build a single compliance calendar covering FBAR, FATCA (Form 8938), Form 3520, PFIC (Form 8621) and T1135. T1135 is not required for the year you first become a Canadian resident.
- FX drag: Hold CAD and USD separately; convert only when needed.
Action timeline
- First month: Finish in-kind transfers; update beneficiaries and instructions.
- First 90 days: Remove PFIC holdings; rebalance; set a CAD cash buffer.
- First year: Coordinate your Canadian return with your CPA; align withholding with treaty rules; book a cross-border review.
Quick checklist
- Confirm in-kind transfers and trading access.
- Remove PFIC-risk positions.
- Build and share one compliance calendar.
- Decide USD versus CAD holdings based on spending needs.
Case example, PFIC clean-up: a Canadian mutual fund was removed and replaced with U.S.-friendly structures, reducing the PFIC filing burden.
Bottom line: the first 120 days determine long-term stability.
Sources and further reading
- 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)
- IRS Form 3520, Transactions with Foreign Trusts
- CRA Form T1135, Foreign Income Verification Statement
Related resources
DisclaimerThis article is provided by Cross Border Wealth for general information and education only. It is not personalized financial, investment, tax, legal, accounting or immigration advice, and it is not an offer or solicitation to buy or sell any security or to use any service. The information comes from sources believed to be reliable, but we cannot guarantee that it is accurate, complete or current. Tax and securities rules in Canada and the United States change often. An article reflects the rules as the author understood them on its publication date, or on the update date shown. Articles are not continuously monitored or revised after publication, so an older article may no longer be current. Check the date and the official sources listed at the end of the article before acting. The views expressed are those of the author, Chris Mills. Cross Border Wealth does not provide advisory services and is not a registered dealer, adviser, accounting firm or law firm. The author writes in a personal capacity, and their views do not represent any firm they are associated with. Obtain independent advice from a qualified cross-border tax, legal or immigration professional before acting on anything you read here. Any investment decision should be reviewed with a licensed advisor to confirm it is suitable for your circumstances, objectives and risk tolerance. Any professional you are introduced to through this site may only conduct business with residents of the jurisdictions in which they are properly registered. Case examples are illustrative and do not guarantee a similar result for anyone else.
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About the author
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.