My head is spinning. Canadian ex-pats for "decades", living in the U.S., RRSPs sat there quietly all this time, no further contributions after leaving Canada.
I tried filling out a "play" Section 217 return before I file a NR5 for "better" tax treatment on lump-sum RRSP withdrawals. Looks like I would pay more than 25% on the RRSP with worldwide income thrown in there. Headache!
Clarify if you could: Are RRIFs, periodic payments, only taxed at the 15% treaty rate, versus 25% from RRSP lump sum withdrawals? If so, it looks like we need to do RRIFs to distribute the funds to us.
Yes, I add the payments to my U.S. return and fill out the IRS form (1116?) to claim a deduction for the tax paid in Canada.
RRSP 25% Withholding - RRIF 15%?
Moderator: Mark T Serbinski CA CPA
You are correct about the 15% RRIF vs. 25% RRSP, but theRRIF withdrawl can be no more than 10% of the previous tear-end value.
Remember that not ALL the RRSP/RRIF dirstibution is taxable in US.
I have writtn many threads on how to determine the taxable portion of your withdrawal.
Remember that not ALL the RRSP/RRIF dirstibution is taxable in US.
I have writtn many threads on how to determine the taxable portion of your withdrawal.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Just another point. Your RRIF has to be set up in 2012, for you to take withdrawal eligible for 15% in 20FOURTEEN, not 2013. You don't get the 15% rate until the yesr BEGINS with an RRIF.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Any age. Once you create the RRIF, you MUST take minimum withdrawals every year thereafter. The minimums increase with age,using formula:
1/(90-age) upto age 70 and then gradually upto 20% above age 90.
1/(90-age) upto age 70 and then gradually upto 20% above age 90.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing