Serbinski Accounting Firms

slmasker, the solution to your IRA/US currency woes is to invest your existing funds in vehicles that are foreign (including canada if you wish). Very little of my 401(k)/IRA is in US funds.

One does not have to repatriate the accounts to Canada to do this, and in fact it is likely too late to ...

Both.

You pay US tax first (whichever you way you choose, depending on your situation: flat withholding or 1040NR).

Then report the entire gross withdrawal on your Cdn return, using the US tax (including any early withdrawal penalty tax) as a credit in the foreign tax credit calculation, for fed ...

I explained the limits of 8833 (directly in response to you) elsewhere, feel free to look for the explanation.

The IRS website also explains the long list of exceptions.

I don't understand why having to use 8833 is discrimanatory against non-citizens. In fact, treaties in general are ...

The 8891 form states that the year to put is the fist year you elected 02-23, regardless of what you did previously.


<i>nelsona non grata... and non pro</i>

You file one sched B and one sched D, with the 'primary' taxpayer (the one on the first line of 1040) as the heading, but report all your (both spouse's) transactions

<i>nelsona non grata... and non pro</i>

As I have explained, there are so few treaty positions which actually require an 8833, that filing one is quasi-optional.

I could make a clear case for not requiring the treaty for FIEI in either arrival year or departure year.

I won't make that argument to spare the board, and for fear that you ...

"..but I would still own a $0 cost basis LIRA".

No. you would have made a non-deductible contribution to your pension, and thus would have $40K of basis. This is pretty clear, even under the new foreign pension rules.

In fact, depending on your pension, it *might* even have been deductible on your ...

Yes you MUST report this income on your 1040 (and your state return).<p>The 1116 category is gen. limitation as you said.

Report the income it on the same line that you would report state UI.

<i>nelsona non grata... and non pro</i>

Of course, had you actually forked over the $40K instead of having them take it off the top, this scenario would have played out otherwise.

There would have been no taxable event, in either US or Canada, and the $40K would now be investement in your LIRA.

By the way, your case illustrates the ...

I'm sure nroy understands think <i>much</i> better now.

Since nroy has left US, there is little benefit in her learning the ropes of US taxation at this point.

nroy, just tell your accountant to file a joint 1040 using FEIE, Form 2555.

Filing a 1040NR for next year (2005 tax year) is not a bad ...

IRS has long had a kooky definition for the two, especially with respect to what Cdns usually view as annuitant and beneficiary.

The advice has always been to view the one who is inline to get the money as the beneficiary, and to never claim to be an annuitant, since it doesn't make sense in the ...

Let me think about that, but you are probably correct.

I might make an argument that your origianl contributions made to this pension constitute 'investment in the account' and, since the $40K withdrawl was made BEFORE Oct 21, 2004, you could apply the foreign pension rules as they existed before ...

Belligerent or not -- I would argue 'not'(but that would probably make me belligerent) -- I have answered your question(s).


How else can I help you, pay your expenses for you?

If you are an employee, being hired as an employee, the company should be paying to get your TN at the very least.

If ...

If I can recap just for my own clarity:

You were offerd the choce of the following (I'll make up numbers)

A. A transferable lump-sum pension of, say, $200K to be put in LIRA, or

B. A transferable lump-sum pension of, say, $300K to be put in a LIRA, but at a cost of $40K

and you chose (B), but ...

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote">If you elect FEIE, you have to always use FEIE in the future (when you can) unless the IRS permits otherwise.<hr height="1" noshade id="quote"></font id="quote"></blockquote id ...