IRS simplifies tax treatment for individuals in certain Canadian retirement plans

The IRS has simplified its procedures for U.S. citizens or resident aliens to defer tax on income accruing in their Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs). Under this change, many taxpayers with RRSPs and RRIFs will automatically qualify for tax deferral similar to that available to participants in U.S. individual retirement accounts and 401(k) plans.

Source: IRS Rev. Rul. 2014-55, I.R.B. 2014-44, October 27, 2014.

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