US expat, become canadian citizen -- is 401k or HSA still available?

[kenmoremmm]

i'm a US citizen, but looking to expat to canada and attain residency and citizenship. my idealistic goal is to keep working for my current company - remotely. currently, i have HSA and 401k with my company (US-based, single office).

would i still be able to invest in 401k and HSA plans if going the canada route?

[ctuser1]

I think you will be best served posting this question in the Financial Wisdom Forum:

https://www.financialwisdomforum.org/forum/.

They are a bogleheads sister forum for Canada.

I doubt you will be able to keep investing in HSA. 401k - may be possible. But I am just guessing based on what I have ready in bogleheads.

I would recommend you post in FWF so that you can get much better information.

[raincoast]

Canadian here.

I'm unsure of the Canadian tax treatment of 401ks, although I suspect existing balances will be treated similar to a Canadian retirement account, as I know the tax treaty between US/Canada has some recognition of each country's retirement arrangements.

If you become a Canadian resident or citizen and have earned income in Canada, you will generate room in the Canadian equivalent of 401ks: the RRSP. RRSPs are simpler than American 401ks and you can open one independently without any involvement from your employer. The RRSP is recognized by the USA for tax purposes. Dividends I earn from US ETFs, for example, are not subject to US withholding tax in my RRSP.

I found a brief article on this here: https://business.financialpost.com/personal-finance/retirement/rrsp/why-the-rrsp-is-the-best-retirement-plan-out-there-for-the-dual-citizen-living-in-canada

You will also be able to use the Canadian TFSA. TFSA contributions are made with post-tax money, but the growth and withdrawals are tax-free. However, TFSAs are apparently not recognized by the USA under the current tax treaty, so if you retain your US citizenship then it's not worthwhile.

There is, as far as I know, no equivalent to HSAs in Canada. I don't know why you would need one if you have Canadian health care.

[kenmoremmm]

thanks for the feedback.

the HSA is just another retirement vessel. i have very few medical expenses at present, so i hope this is able to grow to something reasonable over time (my company just started offering it).

[the_grillman]

I realized that this doesn't quite represent your situation but should provide a good overview of how the Canadian Gov. views US 401k and other such accounts.

https://www.sunnet.sunlife.com/files/advisor/english/PDF/IRA_401k_to_RRSP.pdf