HI,
we just moved back to Canada, i was in US on an H1B permit for 8 years and before i left i moved my 401K into Roth IRA at TD Ameritrade. It was difficult to set up because i am not a US citizen nor a permanent resident of US but in the end they set up the account. Now 6 months later TD Ameritrade is saying i have to liquidate it because i am not US cit/permanent res.
Can you give me some guidelines as to what i should do.
Cash out, can i move money to canada without paying tax. Can i move it into my RRSP or tax savings account.
Thanks your help.
Andrew
Canadian moved back from USA, Roth IRA question
Moderator: Mark T Serbinski CA CPA
As I advise EVERYONE leaving US, you have to locate a broker who is WILLING and HAPPY to take you on as a foreign client. If it was so difficult at TDA, you should have found someone else.
Since you moved the account to a roth, you will not be taxed in canada. the same would have been true if you merely collapsed your 401(k) befor leaving.
However, you realize that your 401(K) transfer to Roth was a fully taxable event in US, right? and you already owe tax to IRS on that. And if you collapse the Roth at this date, you will have early withdrawal tax of 10% to pay to IRS as well, just as if you had taken it directly from your 401(k).
It is very importnat to find a willing broker before leaving. My advice to you would be to find one now.
Try pacifica or blackmont
Since you moved the account to a roth, you will not be taxed in canada. the same would have been true if you merely collapsed your 401(k) befor leaving.
However, you realize that your 401(K) transfer to Roth was a fully taxable event in US, right? and you already owe tax to IRS on that. And if you collapse the Roth at this date, you will have early withdrawal tax of 10% to pay to IRS as well, just as if you had taken it directly from your 401(k).
It is very importnat to find a willing broker before leaving. My advice to you would be to find one now.
Try pacifica or blackmont
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
Way back in march, in response to your initial question on this, I warned:
"What you may have problems with is in six months when a firm says they can't keep your money."
Sorry I was right. What happened with Edward Jones?
"What you may have problems with is in six months when a firm says they can't keep your money."
Sorry I was right. What happened with Edward Jones?
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
Hi thanks for the response.
Yes am aware that am paying tax in US now, would i pay tax again in Canada if i move the entire amount into a tax sheltered account here
I will contact the companies you recommended. Before we left US, i contacted at least half dozen or so - they all say same thing, of course we can help, would love to take your money - get to the fine print, not US citizen and not permanent resident, so you are out of luck.
I would put my money with TD rather than Edward Jones.
Yes am aware that am paying tax in US now, would i pay tax again in Canada if i move the entire amount into a tax sheltered account here
I will contact the companies you recommended. Before we left US, i contacted at least half dozen or so - they all say same thing, of course we can help, would love to take your money - get to the fine print, not US citizen and not permanent resident, so you are out of luck.
I would put my money with TD rather than Edward Jones.
Collapsing a roth does not incur any Cdn tax (unless some of the roth is taxable in US).
Your only viable option wold be to put it in a TFSA, $5000 at a time.
If you put it in an RRSP, you are taking money that was already taxed 9and penalized) and putting it back in a taxable account. Plus you have contribution room to think about.
I only mentionned edward jones, becuase that was an option you were exploring.
Your only viable option wold be to put it in a TFSA, $5000 at a time.
If you put it in an RRSP, you are taking money that was already taxed 9and penalized) and putting it back in a taxable account. Plus you have contribution room to think about.
I only mentionned edward jones, becuase that was an option you were exploring.
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