Serbinski Accounting Firms

You submit a 1040-X for 2004, stating that you are only ammending your 1040 to add Form 8891, with no changes to income, credits, or deductions.

These are all 'OK' to have, but remember that your Roth is not sheltered in Canada, and you must report the income it generates every year on your Cdn . And all other world income is reportable in both Canada and US as well. Whether or not it is 'better' to retire to US or not is a much more elabora...

This is still not removing money from your RRSP. (ie. this is not taxable in Canada, so it isn't in US if you opt for treaty provision).

"Distributions" in this context maeans money taken OUT of your RRSP, not reinvested dividends. If you are using the preaty provision to defer yearly taxation on your RRSP's internal income, you would have nothing to report on these dividends, they would become part of your taxable distribu...

I would only add that not ALL 529 plans have 'penalties' for foreign schooling, so long as the school is recognized in US (most BIG Cdn universities are). There may, of course be tax consequences for the student -- if at that time considered a resident of canada -- which may be tantamount to a penat...

There is no "inheritance" taxin either US or Canada, so you have no worry on that score. However, themoment the property became yours, you are now on thehook for any income it generates in both Canada and US. That woiuld include rental income, and/or capital gains it grwoth after you acqui...

It's up to CCRA to notify me of any RRSP PA, since they review my W-2 and 1040, correct?

Corrrect, but as another recent post (and you) have pointed out, leaving it up to them results in that flat 10% of gross wage PA -- which, in my opinion, is pretty harsh for a 3% match.

The whole concept of Roths is foreign to CRA. While they have categorically stated that Roth are NOT pensions under any definition of the Act or the treaty, I'm pretty sure they would view this match as a pension adjustment. But, if it comes to choosing between 401(k) and Roth 401(K), in your circum...

Will Roth 401(K) contributions or employer match trigger the CCRA RRSP Pension Adjustment the way a standard 401(k) employer match does?

Undoubtedly, since the 401(k) triggers PA, then Roth 401(k) would likewise: it's the company's match, in whatever form, that does it.

I do not know of any exemptions to the requirements for cdns to file this form if otherwise required to.

It is probably 'better' than a 401(k) in your situation, because of your Cdn tax residency. the withdrawal rules are slightly different, since you can always withdraw your taxed portion tax-free, so that makes it even more attractive. I would still be contributing only the portion which is matched, ...

The tax-free withdrawal of taxed contributions is not new -- but it only applies to to contributions that were taxed by CRA, not those made while non-resident. It improves the position of 401(K)'s but still not enough to make them a good bet for Cdn residnts (otherthan the minimum needed to get the ...

The company match should not have been considered income.

If it was, this is easily remedied by lumping in with your contributions that were taxed (as the portion that is non-taxable in Canada) when it comes time to withdraw these.

If you are a Cdn resident making 401(k) contributions, the contributions are not deductible in canada, but the gains and company matches are sheltered until withdrawal (no paperwork required to defer taxation). Upon withdrawal, all but the initial contributions -- for which you've already paid Cdn t...

The treaty allows for independent service who reside in canada providers to be exempt from US fed tax regardless of the number of days spent in US. As long as you continue to meet the treaty definition of Cdn residency, and do not have a "fixed base" where you provide services in US, you a...