Beneficiary IRA

[Irving]

Hello:

I am a U.S. citizen/landed immigrant in Canada. Last spring, my father died and I inherited a beneficiary IRA (aboput 100k Canadian). In the U.S., you are only taxed on required withdrawls (which are based on my life expectancy--I am 38). My understanding is that Canadian tax law (under the tax treaty) would respect the US deferred payment plan and that only withdrawn amounts would be taxed. I would like to avoid withdrawing the full amount (as it would be in the highest marginal tax rate in Ontario) but I have received contradictory advice on this matter. If anyone could help, it would be much appreciated.

Irving

[nelsona]

I am not sure what your 'required' withdrawals are in US on this account, nor when theese withdrawals would have to commence. This is up to the IRS.

The treaty merely states that Canada can only tax you on the ammount that IRS taxes you on the IRA withdrawal.

<i>nelsona non grata</i>