Dual Citizen move to Canada Retirement planning

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cand1am
Posts: 4
Joined: Mon Mar 29, 2010 9:28 pm

Dual Citizen move to Canada Retirement planning

Post by cand1am »

I am a dual citizen planning to move next year to Canada. Can someone let me know if I have summed up an appropriate strategy with respect to retirement accounts.

1. Get all U.S. pay/bonuses before moving to Canada.
2. Convert all 401k's to IRA's (before move) and they can then be transferred into an RRSP account.
3. Do not convert to Roth IRA and try to transfer to Canadian account (because if you transfer into an RRSP account - you will be re-taxed on the money upon withdrawal AND TFSA's don't offer any IRS tax protection)

4. What to do with Roth 401k monies?

Thanks,
DC
nelsona
Posts: 18678
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

2. Forget the transfer to ocanada, it iscompletly unecesary and costly.. If you want to transfer anything, transfer all you can to a Roth before leaving.
3. You have that one all wrong. Transfer IRA/401(k) to Roth BEFORE leaving US, but not after. Transfer to Roth is an excellent idea. Don't bother with TFSA.

Roth401(K) can easily be transfered to a Roth.
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
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