retire in Canada

[kerry]

we plan retire in Canada within next 7-10 years. we lived in us more than 10 year but only hold green card. in order to avoid complex tax issue between this two counties, I plan give up my green card once I retire
if I want to give up the green card and return to Canada, based on the treaty,do I have to file the tax return for US or not, and will I loss my benefit if I loss my green card . I think I will (1) receive pension ( I am not sure if that is 403(a) or not ) from government when I retire. Do I have to report this under 1040NR or I can just report in Canada return
2) by the time I plan retire, I might not reach the age to receive SSI yet, if I give up green card ( or not return back to US for few years) can I still receive SSI when I retire. I hear my friend said SSI can deposit into oversea account.but do I still need to file 1040NR for this ? or only for Canada Returns
3) as I read your post, I know I should roll over my 401K or 457 to Roth IRA and pay lump sum tax to avoid complex issue in the future
4) what else I need to do to reduce this complex issue to the lowest level ( sell principal resident and rental property), closed all bank account.
5) do I still need to file 8891, td90-1 ( foreign account), and 1040NR once I become non-resident of USA
I just want to file one county return when I retire, it is too complex for doing all of them. thank you

[nelsona]

You will get the Social Security (This is called SS) you are entitled to at retirement agre wheher you live in US or Canada, or whether you have green card or not. It will only be taxed in Canada.

Any other retirement income will also be paid to you wherever you live. Yes, converting all retirement income to Roth before leaving US would avoid any future tax in US or Canada on this income. This should be done carefully so as not to incur too much tax when you do the conversion however.

You do not have to sell evrything to be considered non-resident. merely returning to Canada and giving up your GC will suffice.

I would think twice about giving up GC. In fact I would apply for citizenship before leaving, but I am not as worried about US tax return as you appear to be. In any event I would at leat wait a couple of years before giving up GC, just to be sure I'm happy in Canada, You will never get it back once you giveit up and retire.

[kerry]

thank you for your reply. so, if I only get SSI or pension, then I do not have to file return to USA but only in Canada. However, if I still keep my real estate ( renetal ) here, then, I still have to file 1040NR along with 8891, td90.1 ( foreign account), or other tax forms every year once I retire back to canada.
right ?

[nelsona]

If you get pension, it will be taxable in US, regardless of residence or Green card.

You do not have to file 8891 or TD90 if you are non longer US green card holder, but any US income would still be reported on 1040NR.

Only US residents green card holders or citizens are required to file TD form or 8891.

[kerry]

thank you