Defined Contribution Pension Plan (DCPP)

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future_canuck
Posts: 12
Joined: Wed Dec 02, 2020 2:08 am

Defined Contribution Pension Plan (DCPP)

Post by future_canuck »

I am a US Citizen, now living in Canada. Eventually I will become a Canadian citizen (and maybe renounce US citizenship).

Anyway, my company offers a DCPP where I can contribute up to 10% and they will match 4% (they match 1-to-1 for the first 4%). Is there a US-Canada tax treaty that results in favorable treatment of a pension plan like this? Or, will this be a PFIC?
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nelsona
Posts: 18677
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Defined Contribution Pension Plan (DCPP)

Post by nelsona »

This is a Cdn pension plan, Period. Exempt from PFIC. Just like an RRSP is exempt from PFIC considerations.
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
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future_canuck
Posts: 12
Joined: Wed Dec 02, 2020 2:08 am

Re: Defined Contribution Pension Plan (DCPP)

Post by future_canuck »

much appreciated!

no other tax or cross-border issues, right?
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