What is a 401(k) and What to Do with It in Canada

If you have a 401(k) and are planning on moving to Canada, you may wonder what happens to your retirement savings. However, once you relocate to Canada, your account may become restricted, meaning it can no longer be actively managed. This can make handling your individual holdings difficult, and the Internal Revenue Service (IRS) still expects compliance with taxation rules. One option to consider is rolling over your 401(k) into a rollover IRA, which allows for better control and avoids unnecessary tax bill surprises. To do this efficiently, working with a dual Canada/USA licensed cross-border financial advisor or accountant is essential.

For those still working, employers expanding into Canada or hiring Canadian employees remotely should consider offering similar benefits, such as a group retirement plan. Thanks to the SECURE Act passed in December 2022, companies can now use a Pooled Employer Plan, which allows unrelated employers to participate in a single large plan, reducing costs through economies of scale. While a traditional pension plan requires an administrator to handle administrative tasks, a third-party can manage everything, lowering liability for businesses. If you are a job seeker, understanding how these plans work can help you choose an employer that offers long-term financial benefit. These changes acknowledged that flexibility in retirement planning could help preserve resources for retirees with increasing life expectancies.

401(k) Equivalents in Canada and How They Compare to Defined Contribution (DC) Plans

Unlike a 401(k), which is primarily employer-sponsored, Canadian RRSPs can be opened by a private citizen, providing more flexibility. Both savings options are designed to be tax-free, allowing investment income to grow over time. Contributions to these savings vehicles are often made by employers and employees, with some employers offering matching contributions to maximize retirement savings for employees to invest pre-tax dollars.

Contributions follow a set formula, usually based on a percentage of the pensionable salary, ensuring long-term retirement benefits. While both plans help maximize savings and minimize losses, RRSPs offer greater flexibility, as they allow contributions beyond the current year, rolling over unused limits into subsequent years. However, some Canadians struggle with delayed gratification, making retirement planning challenging despite the structured benefits these plans provide. Our American neighbours have long relied on 401(k) plans, but Canada’s system offers multiple pathways to financial security.

General Comparison: 401(k) vs. RRSP

The Canada Revenue Agency (CRA) regulates RRSPs (Registered Retirement Saving Plans), while in the U.S., the government oversees 401(k) plans. In an RRSP, you can invest through a financial institution or an issuer, while a 401(k) is usually tied to an employer in the USA.

When it comes to withdrawals, as both tax advantaged accounts are for retirement security both have rules to prevent early access. The required minimum distributions then apply at the later stage for example you must convert a RRSP to a retirement income option such as a RRIF by December 31 of the year that you turn 71.

401(k) vs. RRSP: Key Similarities Between U.S. and Canadian Retirement Plans

Both 401(k) and RRSPs are considered defined contribution retirement plans, where individuals or their employers can contribute funds. In the United States, 401(k)s are often offered by private industry workers, while in Canada, RRSPs are more flexible and can be opened by anyone through banks or financial institutions. This helps participants save on taxes upfront while growing their investments on a tax-deferred basis till withdrawal. During withdrawal both the invested capital as well as the growth are considered regular income and taxed at ordinary income tax.

While the Internal Revenue Service (IRS) oversees 401(k) limits in the United States with specific annual caps.

401(k) vs. RRSP: Key Differences Between U.S. and Canadian Retirement Plans

One major difference is how contributions are made. Such as $100 or $18 per paycheck, up to a specific limit. On the other hand, RRSPs are more flexible and can be opened individually with a financial institution or bank. In Canada, you can also contribute to a spouse's RRSP, providing additional tax-advantaged opportunities for families. For self-employed individuals in Canada, RRSPs function as a personal retirement account, unlike a 401(k), which is less accessible to the self-employed.

The contribution limits also differ. In 2025, the standard yearly amount for 401(k) contributions in the United States is $23,500, with an additional $7,500 catch-up contribution for those aged 50 and older. In contrast, RRSPs have contribution limits calculated as a 18% percentage of your prior year's earned income (up to a maximum cap, such as $32,490 for 2025). Unlike 401(k)s, unused contribution room in an RRSP can be carried forward, allowing individuals to save more in future years. However, going over your limit in either plan can result in penalties and taxes.

While both 401(k)s and RRSPs serve as retirement savings vehicles, planning your withdrawals is crucial to avoid financial shortfalls later in life. Learn how to ensure you don’t run out of money in retirement in this comprehensive guide.

Another key distinction lies in withdrawals. With a 401(k), early withdrawals made before the age of 59 ½ typically incur a 10% penalty and are added to taxable income. Both plans, however, encourage long-term growth by allowing deposits to grow on a tax-deferred basis, though mandatory withdrawals begin at age 71 (December 31 of the year that you turn 71) for RRSPs.

Finally, the way these plans are used differs. 401(k)s are tied to your employment, making them less portable; leaving your job may require rolling over the funds into another retirement account. In contrast, RRSPs are more independent and can be used whether you’re employed, self-employed, or between jobs. This flexibility makes RRSPs an effective option for Canadians looking to manage their financial planning across different life stages.

How Employers Can Offer and Match RRSP Contributions in Canada

While this approach is not mandatory, it is a valuable benefit that can attract and retain top talent. Unlike in the United States, where 401(k) plans are the standard, Canadian companies can design benefits plans that align with their business goals. However, before implementing an RRSP program, businesses must register with the government, create the necessary accounts, and ensure proper payroll deductions and remittances are in place.

The process of setting up and managing an RRSP program can feel onerous and time-consuming, especially for new businesses. However, with careful planning, companies can apply best practices to streamline operations and avoid unnecessary delays. When structured properly, an RRSP program not only helps employees grow their retirement savings but also strengthens the company’s reputation as a competitive employer in the country. By making it easier for workers to save, businesses foster loyalty and long-term stability within their teams.

Group RRSPs and Employer-Sponsored Retirement Plans in Canada

A Group Registered Retirement Savings Plan (Group RRSP) is a popular option for employers in Canada to help their employees save for the future. Unlike a 401(k), a Group RRSP is not a pension plan but rather a collection of individual RRSP accounts. These accounts are often administered by a financial institution or recordkeeper under an agency agreement. Employers can make contributions directly through payroll, using pre-tax dollars, which are tax-deductible for the business.

One of the key features of a Group RRSP is the flexibility it offers. Employers can choose to match a percentage of their employees’ contributions, often referred to as a dollar match. This encourages member engagement and helps employees build their savings faster. However, any funds contributed to a Group RRSP are immediately vested and can be withdrawn by the employee, though they will be taxed at their marginal rate. This differs from single-employer Defined Contribution (DC) plans, where funds are typically locked in until retirement.

The investment process in a Group RRSP is straightforward but requires careful planning. Employees are usually offered a limited range of mutual fund investments to choose from, along with decision-making tools and investment information to guide their choices. This is where employers can step in by providing resources or partnering with a Canadian provider that specializes in group plan management.

However, large employers may prefer more robust options like DB pension plans or multi-employer plans to handle the complexity and compliance requirements. In some cases, outsourcing to a Pooled Employer Plan or a Pension Plan as a Service provider, can reduce the workload and ensure adherence to pension legislation and tax rules.

While Group RRSPs are simpler to set up, they come with their own challenges, such as increased payroll taxes like EI, WSIB, EHT, and C/QPP. Additionally, employers must ensure compliance with regulators to avoid monetary penalties for non-compliance. For employees, the ability to transfer funds to a RRIF, annuity, or another retirement vehicle upon leaving the plan adds to its flexibility to plan and manage their retirement income.

By carefully considering contribution rates, ongoing costs, and the level of commitment required, both employers and employees can benefit from a well-designed Group RRSP or employer-sponsored retirement plan. Whether you’re just getting started or exploring a different plan type, asking key questions about costs, resources, and expertise is essential to making the right choice.

Which Canada Pension Plan is Right for Your Business?

Choosing the right pension plan for your business in Canada depends on your company’s size, budget, and goals. For small employers in Canada with 100 or fewer employees, a Group RRSP or a DPSP can be a good fit due to their simplicity and lower plan administration requirements. These options offer flexibility in design and contribution rates, making them easier to manage with limited resources. However, they still require careful planning to avoid compliance risks and ensure that ongoing costs stay within your budget. For businesses looking to reduce the workload, partnering with a Canadian provider or exploring Pension Plan as a Service options, can simplify plan management.

For large employers or those with more complex needs, single-employer plans or multi-employer plans may be better suited. These plans often involve greater commitment and complexity, but they provide more robust solutions for employee retention and retirement savings. While DB pension plans offer long-term security, they come with higher costs and risk, making DC plans a more popular choice for many employers. Regardless of the plan type, it’s essential to assess your company’s resources, expertise, and ability to handle the administrative workload before getting started.

Alternative Retirement Plans in Canada & U.S.

Roth 401(k) vs. TFSA: Understanding Tax-Free Savings in Canada

If you’re comparing Roth 401(k) accounts from the U.S. with Canada’s TFSA (Tax-Free Savings Account), it’s important to understand their differences, especially for Canadian residents or anyone with cross-border ties. A TFSA allows you to save using after-tax dollars, and any earnings (growth), during withdrawals both capital invested as well as the compounded growth are completely tax-free. It’s simpler than a foreign trust like a Roth 401(k), which has stricter IRS rules, such as the 5-year rule for withdrawing contributions or earnings. Canadians who are also a US persons must be cautious, as managing both accounts can become complicated with tax filing and potential extra fees.

For the TFSA, the annual contribution limit depends on the year and your TFSA contribution room. For example, in 2025, a TFSA contributor can save up to CAD $7,000. If they’ve been eligible to contribute into TFSA since 2009 and haven’t maxed out their accumulated room the total contribution room available is $102,000 . Meanwhile, the Roth 401(k) allows contributions up to USD $23,500 (or more if you’re 50 or older) via an employer program, but these contributions are not deductible. For Canadian residents, a brokerage TFSA often works better due to fewer restrictions and no need for a SIN or to navigate taxable status in two countries. Whether you’re saving in USD or CAD, understanding the rules for each account is key to avoiding penalties and making the most of your savings each year.

Retirement Account Options in Canada: DPSPs and More

For Canadians, planning for retirement involves choosing the right mix of retirement accounts. While 401(k)s are well-known to our Southern neighbours, Canada offers powerful tools like RRSPs, TFSAs, and DPSPs (Deferred Profit Sharing Plans). A DPSP is an employer-based plan where money is contributed out of profit to help employees stash away savings. Unlike a TFSA or RRSP, employee contributions are not permitted, and the plan is managed privately by the employer. This makes it a key vehicle for those who prefer an investment strategy that is managed on their behalf. However, the Canadian government has set restrictions: employees can only access the funds if they terminate employment or at retirement.

Funds from DPSPs can often be transferred into other investment accounts like an RRSP or converted into a Registered Retirement Income Fund (RRIF) for payouts each month during retirement. The amount you can grow depends on DC contributions and caps set by rules. These accounts work best when paired with a Tax-Free Savings Account or pensions, creating a full retirement picture. Though withdrawals are fully taxable at ordinary income tax rate, the growth is tax-advantaged, making them an important tool for Canadian citizens. If you have unused room in your retirement options, it’s worth exploring these plans to maximize savings and ensure a steady payout in the future.

DC Plan vs. 401(k): Key Differences Explained

While a DC plan is not an exact equivalent to a 401(k), the two share several similar features.

Retirement Benefits: Both plans provide tax deferral benefits based on the total of accumulated contributions and investment earnings.

Matching Contributions: In a DC plan, employers determine the contribution formula and may match employee contributions. Unlike a 401(k), which has no minimum employer contribution, a DC plan requires a minimum employer contribution of 1% of pensionable salary.

Investment Options: 401(k) members choose from employer-provided investment funds, and most DC plan members can also select their investments, though this is not always the case.

Transferring a 401(k) or IRA to a Canadian RRSP: Process, Considerations, and Case Study

If you’ve moved from the United States to Canada, transferring your 401(k) plan or IRA to a Canadian registered retirement savings plan (RRSP) can help simplify your retirement savings. However, you’ll need to navigate several tax implications and follow the rules under the Income Tax Act and the Canada-U.S. Income Tax Convention. Transferring retirement funds often involves converting a lump sum from the U.S. into your Canadian RRSP account, which is treated as a foreign retirement arrangement. Keep in mind that only an eligible amount from the 401(k) plan or IRA can be transferred, and this amount must be included as income on your Canadian income tax return.

For example, individuals like Richard, a Canadian resident who recently re-established his residency in Ontario, may face specific challenges. Richard had retirement funds worth $100,000 in his IRA, but due to a 30% U.S. withholding tax, he received only $70,000, requiring him to use a top-up of $30,000 from his personal savings to fully transfer the amount into his RRSP. It’s important to understand that the CRA allows a foreign tax credit for the taxes withheld in the U.S., helping reduce double taxation. However, the process can become complicated if your retirement savings include contributions made by your employer or if you’re dealing with multiple accounts such as 403(b) or 457(b) plans. In such cases, consulting a cross border accountant or cross border financial advisor is critical to understanding the logistics and ensuring compliance with both IRS and CRA guidance.

Additionally, certain accounts like Roth IRAs or Simple IRAs might not be eligible for direct transfers to an RRSP. In these situations, a rollover to a traditional IRA or custodial IRA might be required first, as outlined in the IRS rollover chart. This adds another layer of complexity, especially for those who are still considered non-U.S. citizens or non-U.S. residents. Each transfer is assessed on a case-by-case basis, and factors like early withdrawal tax, periodic payments, and stipulations for transferring funds need to be reviewed carefully.

Whether you’re managing your funds in USD or CAD, ensure your plan, provisions, and strategy align with your long-term goals. With the right advice from a cross border expert and preparation, transferring your U.S. retirement funds to an RRSP can be a smooth process, allowing you to focus on growing your savings while living in Canada.

When transferring your U.S. retirement funds to Canada, it’s essential to understand how Roth IRA accounts differ from Canadian investment options. Read about the potential cross-border opportunities and tax implications in this article.

Living Between Canada & the U.S

Retirement in Canada vs. the U.S.: Which Country Offers a Better Retirement?

When comparing retirement in Canada and the U.S., the differences in pension systems and benefits stand out. In Canada, the Canada Pension Plan (CPP) and Old Age Security (OAS) form the backbone of the universal government pension plan, offering monthly pensions like the average OAS payment. These programs are funded through payroll deductions during your working years and are available to those meeting basic residency requirements. For low-income seniors, the Guaranteed Income Supplement (GIS) provides additional support, ensuring retirement savings are supplemented. Unlike the U.S., where Social Security is tied to wages and full credits, Canada’s system is more inclusive, with no premiums for government health insurance and little or no cost for prescription drugs for those age 65 and older.

In the U.S., retirement often relies on employer pension plans and 401(K) savings, which can vary widely based on annual income and tax rates. While the U.S. offers higher potential payouts, these are often offset by copayments, deductibles, and claw back provisions. In contrast, Canada’s government-sponsored programs provide stability, even for those with disability or survivor benefits. For example, the OAS is a tax-free benefit but may be reduced to zero for high earners. Canadians also benefit from no premiums for healthcare, unlike the U.S., where retirees face significant out-of-pocket costs. By age 75 and over, Canadians enjoy a more predictable system compared to the U.S., where full retirement age and mandatory contributions can complicate planning.
Choosing between retiring in Canada or the U.S. involves evaluating tax benefits, healthcare, and pension options. For a detailed comparison, read Living in Canada vs. USA: A Quick Guide to the Pros and Cons.

Retiring in Canada as an American: Benefits and Challenges

Retiring in Canada as a U.S. citizen or green card holder comes with unique benefits and challenges, especially when it comes to managing your tax obligations. If you have U.S.-based investments like an IRA or 401(k), it’s important to understand how the Canada-U.S. Income Tax Treaty works to prevent overpaying taxes. For example, withdrawals from U.S. retirement accounts may trigger a taxable event in both countries, but foreign tax credits can help reduce your overall liability. Working with a cross-border accountant or a licensed financial advisor who understands U.S. tax and Canadian rules can help you mitigate issues like increased reporting or additional IRS tax liability.

Another challenge is handling PFICs (passive foreign investment companies), which can be tricky for Americans who move to Canada. These investments, if not properly managed from Canada, can cause significant penalties and increased reporting under U.S. law. Consulting a cross-border financial advisor can help you plan ahead, minimize exposure, and prevent costly mistakes. As a dual citizen or Canadian resident, it’s also beneficial to transfer some investments or keep them in accounts that are compliant with both countries. A professional advisor is essential to ensure your retirement savings are managed efficiently and in line with both U.S. and Canadian regulations.
Understanding RRSPs in Canada: Contributions, Investments, and Tax Benefits

Sort of. In Canada, there are Registered Retirement Savings Plans, or RRSPs, which are mainly employer-managed but also include private account options. Contributions are tax-free up to an annual limit, and any unused portion can carry over to future years. For 2025, your RRSP contribution limit is 18% of the earned income reported on your previous year’s tax return, capped at $32,490. You cannot exceed this limit, so if you have additional funds to save for retirement, consider opening other accounts or investment vehicles such as TFSA or Non Registered account.

RRSPs aren’t just passive savings accounts. When you deposit funds, you choose how they’re invested. Many RRSPs offer target-date plans, aligning your investment mix—stocks, bonds, ETFs—with your retirement year and risk tolerance. For instance, if you’re retiring soon, you’d avoid highly volatile stocks.

One of the great perks of RRSPs is their “set-it-and-forget-it” potential. If your employer offers one, you can automatically deduct a portion of your paycheck into the account, tailored to your preferences. While it’s wise to check in occasionally to ensure the account aligns with your goals, you can mostly let it grow, especially in earlier years.

Alternatively, if you’re more hands-on, you can actively manage your investments by adjusting the mix of stocks, bonds, ETFs, and other assets. It’s all about your comfort level with managing investments.

Conclusion

Navigating a 401(k) in Canada requires understanding tax rules, transfer options, and retirement savings strategies. While both 401(k)s and RRSPs offer tax-deferred growth, they differ in contribution limits, withdrawal rules, and employer benefits. For those moving to Canada, options like rolling over a 401(k) into an IRA or managing cross-border taxation are crucial. Employer-sponsored plans, TFSAs, and DPSPs provide additional savings opportunities. Given the complexities of taxation and retirement planning, consulting a financial expert ensures a smooth transition and long-term financial security in Canada.

FREQUENTLY ASKED QUESTIONS:

What is a 401(k) plan?

It’s part of an employee’s total compensation package, where the employer may contribute to or match the employee’s contributions through payroll deductions.

A 403(b) plan is similar to a 401(k), but the key difference lies in the type of employer offering it. While 401(k) plans are provided by private, for-profit companies, 403(b) plans are offered by government and not-for-profit organizations.

What is a 401(k) equivalent in Canada?

RRSP is the nearest equivalent to 401 (K) as both are offered by employers as part of a compensation package, but the contribution limits differ. Unused contribution room in RRSP can be carried forward indefinitely, up to age 71.

How are withdrawals from a 401(k) and an RRSP taxed, and what are the key differences in their tax treatment?

Taxes are only paid when funds are withdrawn. However, there are differences. Withdrawals from both accounts are subject to withholding and income taxes. Additionally, The required withdrawal amounts are based on the account’s value on December 31 of the previous year and formulas set by the IRS (for 401(k)s) or the CRA (for RRSPs).

Is a 401(k) taxable in Canada?

Earnings inside 401(k) and 403(b) plans are tax-sheltered in Canada, but withdrawals are taxable and must be reported on your Canadian tax return. The U.S. has the first right to tax these withdrawals because the original contributions were made in the U.S. For U.S. citizens or green card holders, taxes will also be due on their U.S. tax return.

Canadian residents without U.S. tax reporting requirements typically face a 15% U.S. withholding tax on withdrawals. Thanks to the Canada-U.S. tax treaty, taxes paid to the IRS can be claimed as a foreign tax credit on a Canadian tax return. This helps reduce or eliminate double taxation. To navigate these complexities, it’s recommended to work with a cross-border accountant or financial advisor who understands taxation on both sides of the border.

Can I transfer my 401(k) into an RRSP?

In the U.S., lump-sum withdrawals from a 401(k) face a mandatory 30% withholding tax, meaning only part of the funds can be contributed to an RRSP. Additionally, if you’re under age 59½, an early withdrawal penalty of 10% applies.

To transfer the full pre-tax amount of a 401(k) to an RRSP, you’d need to cover the withheld tax and penalty from other sources, making this approach costly. A better option is to keep the 401(k) and work with a cross-border financial advisor to manage the account efficiently.

How to bring a 401(k) to Canada?

Because 401(k) accounts must be managed by the original employer, the first step in transferring these assets is rolling over the 401(k) to an IRA. This allows the account to be moved and managed from Canada without tax consequences. However, note that while 401(k) withdrawals are eligible for income splitting on Canadian taxes, IRA withdrawals are not. It’s important to consult a cross-border financial advisor to assess how this rollover might impact your retirement plans before making a move.

What about a Roth 401(k)?

A Roth 401(k) is part of an employer’s compensation package and is funded with after-tax dollars, offering tax-free growth as well as tax free withdrawals. However, contributions are not tax-deductible. Qualified withdrawals from Roth 401(k)s are tax-free, provided the account meets the five-year rule (the first contribution must have been made at least five years earlier).

Unlike traditional 401(k)s, Roth 401(k)s have no required minimum distributions starting in 2024 (under the SECURE Act 2.0). However, Roth IRAs require a one-time election to treat them as non-taxable in Canada, and no further contributions should be made after becoming a Canadian resident, as this would invalidate their tax-free status.

What are the key differences between a Roth 401(k) and a Roth IRA in terms of eligibility, income limits, and contribution caps?

Both Roth 401(k)s and Roth IRAs are funded with after-tax dollars and allow for tax-free growth, but there are differences. Roth IRAs have income limits, while Roth 401(k)s do not, making the latter accessible to high-income earners. Contribution limits for Roth IRAs in 2023 are $6,500 (under age 50) and $7,500 (over age 50), while Roth 401(k)s allow up to $22,500 (under age 50) or $30,000 (age 50 or older) in combined contributions with traditional 401(k)s.

Can I contribute to a 401(k) while living in Canada, and how does the Canada-U.S. tax treaty affect these contributions?

In most cases, individuals crossing the border to live in Canada will either retire or switch employers. However, some individuals may still contribute to a 401(k) while living in Canada. Under the Canada-U.S. tax treaty, such contributions may be deductible for Canadian tax purposes, up to the individual’s RRSP contribution room. This is a complex area, so consult a cross-border accountant to determine if this option is beneficial.

What are the yearly contribution caps for a 401(k)?

In the U.S., the IRS sets specific annual limits for 401(k) plans. For example, in 2025, the limit is $23,500 for individuals under 50, with an extra $7,500 catch-up contribution available for those aged 50 and older.

Understanding these limits is key for cross-border financial planning. High earners should be aware of how much they can contribute without facing penalties and how these contributions impact their tax and retirement strategies when moving between countries.

Do I require a Registered Retirement Income Fund (RRIF)?

When Canadian residents convert their RRSPs (Registered Retirement Savings Plans) into RRIFs after retiring, they start receiving regular payments that are taxed as income.

For those with 401(k) plans relocating to Canada, it’s important to grasp the similarities and differences between RRIFs and 401(k) distributions to effectively manage retirement income.

Is a Tax-Free Savings Account (TFSA) a viable choice for dual citizens retiring in Canada?

Unlike 401(k) plans, TFSA contributions aren’t tax-deductible, but withdrawals are tax-free in Canada. However, for cross-border individuals, a TFSA can create additional complexities since the IRS treats it as a taxable account and may classify it as a foreign trust. Consult your cross-border accountant and financial advisor to assess whether a TFSA could still be suitable for you as a Canadian tax resident.

Are Registered Retirement Savings Plans (RRSPs) a solid financial planning tool for dual citizens retiring in Canada?

RRSPs are Canadian retirement savings accounts offering tax-deferred growth, similar to a 401(k), though contribution rules differ. To have RRSP contribution room, you must have earned income in Canada, as the amount you can contribute is based on your Canadian earnings which is 18% of the last year Canadian income.

Is it necessary to work with a cross-border financial advisor?

If you have investable assets, it’s crucial to collaborate with a cross-border advisor and accountant to avoid tax issues or costly mistakes. Even with less than $1M in investable assets, seeking guidance from a cross-border accountant ensures you stay on the right path.

As an American living in Canada, what should I know about income taxes on my 401(k)?

As an American residing in Canada, you must report your worldwide income to both Canada and the U.S. Earnings in your 401(k) are tax-sheltered until you withdraw, at which point you must report the income on both your Canadian and U.S. tax returns.

As a cross-border individual, which retirement savings accounts are suitable for me?

If you’re a cross-border individual living and working in Canada, RRSPs and group RRSPs are effective retirement savings accounts because they don’t create additional tax complications.

For Canadians living in the U.S., IRAs, Roth IRAs, and 401(k)s are good retirement savings options, as they are recognized under the Canada-U.S. Income Tax Treaty and help you save for retirement.