USD dividends in non retirement account
As part of a past employers ESPP/Bonus stock program, I've got some shares of a US Stock in a brokerage account tied to that past employer. The stock does pay a regular quarterly dividend but I can't really do anything with it in that account. Because it's tied to the employer through a group plan it doesn't cost me anything to leave my shares there(just a standard transaction fee if i sell those shares), but i also can't setup a drip or buy any other shares with those dividends(in that account).
I've got my primary RRSP/TFSA's in Questrade and was considering just wire transferring the US cash from my dividends to one of my Questrade accounts as USD and then i could purchase some US based ETFs/stocks in questrade with it quarterly.
First off, which would be better for this from a tax perspective? Transfer to the RRSP account or the TFSA account?
Second, any other options to better manage this money? It's not much, couple hundred a quarter. It'll cost me $10 to wire it to questrade.
Posted Jan 30, 2020, 9:26 PM UTC
I would just let it sit in cash until you have a sizeable amount and wire it to your Questrade or a US chequing account.
Can't really avoid withholding tax in this case. Still a nice perk