Avoiding the ‘silent enemy’ of foreign withholding tax in RRSPs

The Globe and Mail
February 2, 2026.

The drag on income from foreign withholding taxes is often not well understood, as the U.S.-Canada tax treaty exempts U.S. income, dividends and capital gains in an RRSP.

The rule is a strange tax quirk, says Diana Orlic, Senior Portfolio Manager at Richardson Wealth. “At first, it might seem like a non-issue, but the cost can add up over time.”

“We always try to find the strategies that make the most sense for clients that are the most tax efficient,” she says. “But at the end of the day, the decision does come down to what clients are comfortable with.”

Related articles

2026

The AI boom isn’t a replay of the dot-com bust

Anwar Husain explores the similarities and differences between today's AI-driven market rally and the dot-com boom of the late 1990s.

2 minute read

2026

The IPO Party Is Back. Just Don’t Forget the Hangover

August 1, 2026 - Lynn MacNeil writes about writes about the excitement surrounding the latest wave of mega-IPOs, including SpaceX, OpenAI and Anthropic. For investors,…

2 minute read

2026

This advisor found a book to co-purchase after leveraging her expertise in tax and estates

July 29, 2026 - Alysha Tse shares how and why she partnered with Chernick James Tse & Associates Wealth Counsel, as the practice prepared for…

2 minute read