Using 401K for down payment on home in Canada
Moderator: Mark T Serbinski CA CPA
-
txincanada
- Posts: 1
- Joined: Mon Mar 17, 2008 11:30 am
Using 401K for down payment on home in Canada
I'm a PR in Canada and have lived here for 5 years. I'd like to use part of my US 401K as a downpayment on a house in Canada. How do I accomplish this? I have no spouse. My RRSP is locked and so unavailable for use in this situation.
There is no provision similar to HBP for your 401(k). Whatever you take out will be taxable in US.
If your home purchase qualifies as a first home purchase under IRS rules, you will be excused for the 10% penalty on the first $10,000 you take out. But you will pay US (and Cdn) tax on this withdrawal.
Not the best plan.
If your home purchase qualifies as a first home purchase under IRS rules, you will be excused for the 10% penalty on the first $10,000 you take out. But you will pay US (and Cdn) tax on this withdrawal.
Not the best plan.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best