RRSPs, TFSAs and KiwiSaver: What Happens to Your Canadian Retirement Savings in New Zealand

Your RRSP and TFSA don't transfer to New Zealand, and they don't disappear either. What happens to them, and how KiwiSaver fits in as a newcomer, depends on rules from both the CRA and Inland Revenue (IRD) that most people only discover after they've already moved.

Your RRSP and TFSA stay in Canada

There's no mechanism to transfer an RRSP or TFSA into a New Zealand account on a tax-advantaged basis, and no equivalent New Zealand account they roll into. Both stay exactly where they are, held with your Canadian bank or investment provider, and you keep them as a non-resident.

What the CRA does when you leave

Leaving Canada permanently doesn't trigger deemed disposition, an automatic sale-and-repurchase for tax purposes, on your RRSP; it stays intact. You simply lose the ability to make new contributions once you're no longer earning Canadian income, since RRSP room is based on Canadian earned income. Withdrawals from an RRSP as a non-resident are subject to Canadian non-resident withholding tax under Part XIII of the Income Tax Act, at 25% by default, though this can be reduced under Canada's tax treaty with your country of residence. Confirmed against CRA's published non-resident withholding rules as at 26 Aug 2026; the exact treaty-reduced rate that applies to New Zealand residents specifically is worth confirming directly with a cross-border tax adviser, since treaty rates vary by payment type and circumstance.

Your TFSA is simpler in one respect and trickier in another. There's no departure tax on a TFSA, and withdrawals are never taxed by Canada, resident or not. But TFSA contribution room stops accumulating the moment you become a non-resident, and if you contribute to a TFSA while a non-resident, CRA charges a 1% per month penalty tax on that contribution until it's withdrawn or you resume Canadian residency. In practice, this means: don't contribute to your TFSA once you've left Canada permanently.

How New Zealand taxes what you left behind

This is the genuinely complex part, and it's worth getting right rather than assuming your RRSP and TFSA are simply invisible to IRD once you're a NZ tax resident. New Zealand offers new migrants a 4-year transitional resident exemption on most foreign income, including foreign investment fund (FIF) income and regular foreign pension payments, starting from when you first become a NZ tax resident. Confirmed directly against IRD's published transitional resident guidance as at 26 Aug 2026.

An RRSP is generally treated by IRD as a foreign superannuation scheme, which follows its own set of rules rather than the general FIF regime. The same 4-year transitional exemption applies to foreign superannuation, but once that window closes, a lump sum withdrawal from your RRSP is assessed using either the schedule method, a default calculation based on how many years you've been a NZ tax resident, designed to approximate the tax you'd have paid if the growth had accrued while you were NZ-resident, or a more complex formula method. Regular, periodic payments from a foreign pension are taxed differently again. Given the number of variables, your residency start date, whether you withdraw as a lump sum or drawdown, how long you wait, this is a case where a specific calculation from a New Zealand accountant familiar with Canadian RRSPs is worth the fee, not a guess from a general guide.

A TFSA is a different animal for IRD purposes: it isn't a registered retirement or superannuation scheme, so it doesn't get the foreign superannuation treatment. If your TFSA holds foreign shares or managed funds, it may fall under the ordinary FIF rules once your transitional exemption ends, though there's a de minimis threshold, NZ$50,000 based on original cost, with a proposal to raise this to NZ$100,000 from 1 April 2026 still moving through the tax policy process at time of writing, below which FIF rules don't apply. If your TFSA mostly holds cash or term deposits, the interest is more likely to be taxed as ordinary foreign investment income once you're a NZ tax resident and your transitional exemption has ended. Confirmed against IRD's FIF guidance as at 26 Aug 2026; this is genuinely account-specific and worth confirming with an adviser who can see what your TFSA actually holds.

KiwiSaver as a newcomer

KiwiSaver is New Zealand's workplace retirement savings scheme, broadly similar in spirit to an RRSP with an employer match, though structurally different. To join, you generally need to be aged 18 to 65 and either a NZ citizen, entitled to be in New Zealand indefinitely, an Australian citizen, or hold a NZ or Australian residence-class visa. If you're on a temporary work, student or visitor visa, you're not eligible to join, even though you're paying tax here in the meantime. Confirmed against IRD's published KiwiSaver eligibility rules as at 26 Aug 2026.

If you do qualify, typically once you've secured a residence-class visa, your employer must automatically enrol you if you're a new employee within the eligible age range, though you can opt out within a set window if you don't want to join yet. Once enrolled, you contribute a percentage of your pay, a minimum of 3%, your employer matches at least 3%, and the government adds its own annual contribution up to a cap, provided you've contributed enough yourself that year. You'll need your IRD number before you can be enrolled, so sort that first.

The practical order of operations

Get your IRD number, confirm your visa's residence status, and don't contribute further to your TFSA once you've left Canada for good. Beyond that, treat your RRSP and TFSA as Canadian assets you'll deal with on withdrawal, not accounts to actively manage from New Zealand without advice, and get a proper cross-border calculation done before you take any lump sum out of either, since the NZ tax treatment depends heavily on timing and how long you've been resident.

Key Takeaways

• RRSPs and TFSAs stay in Canada; there's no tax-advantaged transfer into a NZ account.
• New Zealand's 4-year transitional resident exemption covers most foreign income, including RRSP and TFSA income, from your NZ residency start date.
• After the exemption ends, RRSP withdrawals are typically taxed under IRD's foreign superannuation rules; TFSA holdings may fall under the FIF rules depending on what they hold.
• Don't contribute to a TFSA once you're a non-resident of Canada; CRA charges a 1% monthly penalty on those contributions.
• KiwiSaver requires a residence-class visa or equivalent to join; temporary visa holders aren't eligible.

Frequently Asked Questions

Should I cash out my RRSP or TFSA before I leave Canada?

Don't decide this from a general guide. The right call depends on your tax bracket in both countries, your NZ transitional exemption timing, and Canadian withholding tax, and it's genuinely different for every situation. Get advice from a cross-border tax adviser before you do anything irreversible.

Can I keep contributing to my RRSP once I'm working in New Zealand?

No. RRSP contribution room is based on Canadian earned income, and once you're earning in New Zealand instead, you stop accumulating new room.

Related Reading

Moving from Canada to New Zealand: The Complete 2026 Guide

Tax in New Zealand for Canadians

Banking in New Zealand for Canadians

Moving Money from Canada to New Zealand