I'm a US citizen with an RRSP — do I still need to file Form 8891 every year?
No — and if an old guide tells you to, it's out of date. The IRS eliminated Form 8891 in 2014 with Revenue Procedure 2014-55. Since then, the treaty deferral of US tax on RRSP/RRIF earnings is automatic: as long as you file US returns for every year you hold the plan and report distributions as income, the earnings accumulate tax-deferred just like a US IRA.
What changed and when
| Era | Rule |
|---|---|
| Before 1995 | Annual election under Rev. Proc. 89-45 |
| 1995–2013 | Form 8891 attached yearly to claim treaty deferral |
| Since 2014 (Rev. Proc. 2014-55) | Deferral is automatic; Form 8891 eliminated |
| Missed the election in the past? | 2014-55 granted retroactive relief |
The 2014 change also fixed the old trap where people who never filed 8891 were taxed annually on RRSP growth — the IRS made the relief retroactive.
What you still must do
Automatic deferral is not a reporting holiday:
| Still required | Detail |
|---|---|
| FBAR (FinCEN 114) | If aggregate foreign accounts > $10,000 |
| Form 8938 | If over FATCA thresholds |
| Report distributions | RRSP/RRIF payouts are US-taxable as ordinary income in the year received |
| Contributions | Not deductible on the US return |
Frequently asked questions
An old forum post says to file 8891 "to be safe." Should I?
No — the form no longer exists in the IRS system for this purpose. Filing obsolete forms creates confusion, not safety.
Does the automatic deferral cover my TFSA too?
No. The treaty provision (Article XVIII(7)) covers RRSPs and RRIFs only. TFSAs, RESPs, and FHSAs get no US deferral — their earnings are taxable annually in the US.
I never filed 8891 before 2014 and paid US tax on RRSP growth. Can I get it back?
Rev. Proc. 2014-55 provided retroactive relief, but reclaiming old years is now constrained by normal refund limitation periods. Talk to a cross-border accountant about your specific years.
Sources
- https://cpavalidated.com/rrsp-rrif-us-persons.html
- https://www.irs.gov/newsroom/irs-simplifies-procedures-for-favorable-tax-treatment-on-canadian-retirement-plans-and-annual-reporting-requirements (IRS IR-2014-97)