Cardinal Point Wealth Management Releases New 2025 Cross-Border Retirement Guide for High-Net-Worth Families

Toronto, ON, Dec. 06, 2025 (GLOBE NEWSWIRE) -- Cardinal Point Wealth Management has issued a 2025 advisory to help high-net-worth families navigate the complexities of retirement when assets, income, or family ties span both Canada and the United States. With dual taxation, differing retirement systems, and evolving estate and healthcare rules, complicated cross-border planning requires a highly coordinated approach.

“Cross-border retirement planning isn’t just about numbers—it’s about sequencing and integration,” says Kris Rossignoli, Senior Private Wealth Manager at Cardinal Point Wealth Management. “For families with complex financial footprints, timing when and where income is accessed can mean the difference between optimizing returns and paying unnecessary tax.”

Residency and Taxation: The Foundation of Cross-Border Planning

Determining legal tax residency is the starting point for all cross-border retirement plans.

Canada determines residency based on ties such as a home, spouse, or dependents, while the U.S. relies on citizenship, Green Card status, or the “substantial presence test.” Even Canadian snowbirds who spend extended time in the U.S. can inadvertently trigger U.S. tax residency.

The Canada–U.S. Tax Treaty offers tie-breaker rules, but both countries tax residents on worldwide income. U.S. citizens must also continue filing with the IRS regardless of residence. Strategic use of foreign tax credits helps reduce double taxation.

Coordinating Government Pensions

The totalization agreement ensures individuals with careers in both countries do not lose pension eligibility.

• Social Security: Requires 40 credits (about 10 years of U.S. work). Canadians with shorter histories may qualify using CPP credits.
• CPP: Based on lifetime contributions; deferring to age 70 raises payments by 8.4% annually.
• OAS: Based on Canadian residency; clawback applies above ~$87,000 CAD of income.
  
  

While Social Security is partly taxable in Canada, CPP and OAS are fully taxable. Coordinating the timing of claims smooths income and reduces clawbacks or higher marginal tax exposure.

Managing Retirement Accounts

Canadian Accounts

• RRSP/RRIF: Tax-deferred in Canada and recognized by the U.S. under treaty rules, though not by all states.
• TFSA/FHSA/RESP: Tax-advantaged in Canada but taxable to U.S. citizens.

U.S. Accounts

• 401(k)/IRA: Tax-deferred; Canadian residents pay tax on distributions.
• Roth IRA: Tax-free in both countries if properly elected with the CRA and contributions stop after Canadian residency begins.

Coordinating RRSP and IRA withdrawals prevents tax bracket creep and ensures cross-border tax efficiency.

Investment and Currency Planning

Cross-border retirees must manage both currency exposure and tax efficiency. Income and expenses in different currencies can impact purchasing power. Maintaining dual-currency accounts, globally diversified portfolios, and prudent hedging for large expenses helps reduce volatility.

U.S. estate tax can also apply to Canadian residents holding U.S. securities. Proper structuring and professional oversight mitigate exposure while maintaining global diversification.

Estate and Succession Planning

Canada imposes capital gains taxes at death, while the U.S. levies estate taxes on worldwide assets for citizens and U.S.-situs assets for Canadians. The tax treaty provides credits to offset double taxation, but proper planning remains essential.

Cross-border Wills and Trusts should comply with both legal systems. U.S. revocable Trusts may create unexpected Canadian tax liabilities if not carefully and strategically structured.

Healthcare and Insurance

Healthcare planning varies sharply by country.

• Canada: Universal healthcare applies to residents, but retirees abroad may face coverage limits.
• U.S.: Medicare begins at age 65 for those with sufficient work history; Canadians retiring in the U.S. often need private coverage until they are eligible.

Long-term care insurance should be reviewed in both jurisdictions, as coverage structures and costs differ.

Key Takeaways

• Residency determines tax obligations—understanding treaty tie-breakers prevents double taxation.
• Coordinating CPP, OAS, and Social Security benefits improves after-tax income.
• TFSA, FHSA, and RESP accounts are not U.S.-tax-free; Roth IRAs may retain exemption under treaty elections.
• Estate and investment structures must reflect both countries’ rules.
• Currency, healthcare, and compliance costs require annual review.
  
  

What This Means for Retirees

For high-net-worth families with ties in both countries, effective retirement planning depends on integration — aligning tax, investment, and estate strategies under both systems. As Rossignoli notes, “When every part of a client’s financial life aligns across borders, retirement becomes more efficient, predictable, and sustainable.”

About Cardinal Point Wealth Management

Cardinal Point Wealth Management provides integrated financial, tax, and estate planning services for clients with assets in Canada and the United States. The firm specializes in cross-border wealth management, cross-border tax planning, and cross-border estate planning, serving as a trusted Canada–U.S. expat advisor for individuals and families navigating complex, multi-jurisdictional retirement and taxation matters. Its multidisciplinary team assists clients with cross-border compliance and long-term strategy, ensuring transitions are managed accurately and efficiently.

Disclaimer: This press release may contain forward-looking statements. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans and business plans) and may change without notice. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.

Media Contact
Company Name: Cardinal Point Wealth Management, ULC
Contact Person: Kris Rossignoli, Senior Private Wealth Manager
Email: info@cardinalpointwealth.com
Website: www.cardinalpointwealth.com

Media Contact
Company Name: Cardinal Point Wealth Management, ULC
Contact Person: Kris Rossignoli, Senior Private Wealth Manager
Email: info@cardinalpointwealth.com
Website: www.cardinalpointwealth.com

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