Are earnings in a U.S. 401 k tax deferred in Canada?

Alex · Post by **Alex** » Wed Mar 28, 2012 6:01 pm

How are the earnings inside the 401 k treated for Canadian tax purposes? Are they tax deferred? If so, is the tax deferral automatic or does a treaty election have to be made? If an election is needed are late elections allowed for past years? Thank you. Alex

nelsona · Post by **nelsona** » Thu Mar 29, 2012 12:33 pm

Yes, the deferral is automatic.

The only thang that is not automatic is a Roth deferral, and that requires election or paying of tax.

Alex · Post by **Alex** » Thu Mar 29, 2012 2:02 pm

Thanks very much for this helpful answer.

I've been living in Canada for over 10 years now. I have the 401k from before that. Has it always been automatically deferred or is that a recent policy/treaty negotiation?

nelsona · Post by **nelsona** » Thu Mar 29, 2012 4:16 pm

C'mon.