Taxes on 401K invested in foreign country after retirement

[NewCanadian]

Before immigrating to Canada and then to US, I came from outside North America where I plan to spend winter months after retirement .

The home country has higher rate of inflation so are the interest rates on bank deposits. If I decide to move my money out of 401K after retirement into foreign currency bank deposits, I can get good interest rate. I will have to pay taxes to that country for which anyway I file tax return there.

Let us say, that post retirement, I would like to have 100K income of which 60K can come from foreign interest earning transferred back to US funds, are there any tax issues, I need to be aware of. Is there any limit on foreign earnings?

I file TD F90 every year.

Income from Canada pension is not counted above.

[nelsona]

Your 401(k) will be taxable in US upon withdrawal, regardless of what you do with it.

You will be taxed on world interest regardless of the currency you keep it in.