IRAs at Interactive Brokers for Dual Citizens Moving to Canada?

[dualblues]

Hello Mustachians,

Thanks for your help!

Following "best practices" for a dual citizen relocating from US to Canada, I wish to consolidate IRA/Roth IRA to a brokerage that is expat friendly:
i) won't liquidate or freeze my account when I change my address to a Canadian address;
ii) well-established and supports self-managed accounts (I prefer to manage investments myself rather than paying a boutique brokerage a 1% for financial planning).

I have read Interactive Brokerage recommended many times (and I have a brokerage account with them already). After extended wait times, I have discussed my needs with several representatives from IB. They insist that there will be issues if I update my address to a Canadian address on an IRA or Roth IRA account. They cited a page that indicates residents of Canada cannot open an IRA with them: https://www.interactivebrokers.com/en/index.php?f=14429 . I told them my case was a little different than their knowledge byte since I would be establishing the accounts while still a US resident (and updating address once I move). They say that they don't support a Canadian resident holding an IRA account.

Can anyone share their experience using Interactive Brokerage to hold their IRA as a Canadian resident? I am not sure if their policies have changed or I am just not talking to the right person at IB. Since these are my retirement funds, it is important to make sure my strategy is compliant and coherent.

Note: I am US person which means IRS guidelines force brokers to with-hold on IRA and 401k distributions (According to Vanguard IRA withholding is 10% and 401k is 20%).

Cheers!

[FLBiker]

I can't speak to IBKR, but Fidelity and TIAA said they were OK with a Canadian address on a retirement account.  Vanguard is not.  Caveat that this could change at any time.

[daverobev]

Not exactly your case, but IB tend to make you move your account to the jurisdiction you're in. So, if you move from Canada to the UK they move you from IB Canada to IB UK. If you then move somewhere else, they move you again.

On one hand it'd be weird if they made you close your tax shelters, but then... I don't think they care all that much.

Try Schwab? AFAIK they are pretty international friendly.

[dualblues]

Thanks for your helpful responses,

daverobev - do you have experience moving funds from one IB jurisdiction to another. In the case of "regular" (non-registered) accounts, were they up to the task of transfering stocks/funds without selling (which would be a taxable event)?

FLBiker - what type of accounts did you have at Vanguard and Fidelity (401k or IRA)? (I ask because Vanguard has said they could update my 401k address and the only restrictions would be: no new funds and higher with-holding on distributions. Also, they said I would be able to keep investing existing funds in stocks and mutual funds).

Cheers!

[daverobev]

Yes it is a transfer; there is no sale or purchase. Your ACB (that they have on file) is moved across. Though how correct it ends up being I don't know with the currency change.