Distribution from the previous employer's pension plan

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1canuck
Posts: 15
Joined: Fri Jan 25, 2008 1:53 pm

Distribution from the previous employer's pension plan

Post by 1canuck »

Will there be any IRS penalties if I receive any distribution from my previous employer's pension plan? I never knew that I would be eligible to get any distribution, did not have the details of it and hence never filed the form 8891 for it (but I have filed it for my RRSP that I still have in Canada).

I received a notification from the pension plan admin that I would be entitled to receive money (less than C$5,000) - the company went bankrupt and now their pension plan is closing too.

Since I do not live in Canada (l live in the US), I plan on asking them to mail me a check (they will withhold 25% since I am a non resident of Canada)

Your advice would be very much appreciated.
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nelsona
Posts: 18363
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

You simply need to report the full amount and take credit for the Cdn tax withheld. No previous reporting was required, this was not an RRSP.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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1canuck
Posts: 15
Joined: Fri Jan 25, 2008 1:53 pm

Post by 1canuck »

Thanks Nelson!
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