start work as TN in US and tried to set up retirement plan
Moderator: Mark T Serbinski CA CPA
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lxu20022000
- Posts: 3
- Joined: Tue Jul 08, 2008 12:49 pm
start work as TN in US and tried to set up retirement plan
I started working as TN in US, and planed stay as this situation for 10 years before moving back to Canada. Based on this year salary, I may earn 150,000 per year. What my best retirement plan is in term of reduce tax now and reduce tax in the future. Should I contribute more 401(k) or Roth 401 each year?
401(k) gives you deduction now, but fully taxable later, bioth in US and Canada.
Roth401(k) does not get you deduction now, but will be fiully tax-free in both countries later.
My advice, use 401(k) to reduce your taxable income to the 15% tax bracket, and Roth401(k) everything else.
Then just before returning to canada, consider converting all your 401(K) to Roth, paying the tax at that time.
Then all your retirement money from US will be tax-free forever.
Roth401(k) does not get you deduction now, but will be fiully tax-free in both countries later.
My advice, use 401(k) to reduce your taxable income to the 15% tax bracket, and Roth401(k) everything else.
Then just before returning to canada, consider converting all your 401(K) to Roth, paying the tax at that time.
Then all your retirement money from US will be tax-free forever.
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