Will there be any IRS penalties if I receive any distribution from my previous employer's pension plan? I never knew that I would be eligible to get any distribution, did not have the details of it and hence never filed the form 8891 for it (but I have filed it for my RRSP that I still have in Canada).
I received a notification from the pension plan admin that I would be entitled to receive money (less than C$5,000) - the company went bankrupt and now their pension plan is closing too.
Since I do not live in Canada (l live in the US), I plan on asking them to mail me a check (they will withhold 25% since I am a non resident of Canada)
Your advice would be very much appreciated.
Distribution from the previous employer's pension plan
Moderator: Mark T Serbinski CA CPA
You simply need to report the full amount and take credit for the Cdn tax withheld. No previous reporting was required, this was not an RRSP.
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