Best Option for dealing with IRA?

OregontoBC · Post by **OregontoBC** » Fri Apr 01, 2016 6:27 pm

I am a dual citizen and my wife is US only. We have spent our working years in the US, but would like to move to BC if we can afford it. I only have SS so that is no problem, but my wife has a sizable traditional IRA. If she converted it to a Roth, she would be hit with 50% taxes (federal + state). She can't move it to a RRSP because she is 72. Is the only option to keep it in the IRA, take withdrawals (about 30K a year), pay the US 15%, and regular Canadian taxes? I will be starting a small self-employed business in Canada, and that would hopefully allow us to claim some foreign tax credit, but we are afraid it might be too tight, depending on the exchange rate fluctuations. Thanks for any comments!

nelsona · Post by **nelsona** » Sat Apr 02, 2016 9:35 am

she wouldn't move it to an RRSP even if she could because THAT would also indice 40% US tax.

Its a pension. treat it like so.