Cash out RRSP less than $10,000 how to report to IRA

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S kaur
Posts: 1
Joined: Sat Feb 08, 2020 10:16 pm

Cash out RRSP less than $10,000 how to report to IRA

Post by S kaur »

moved to the US in 2010 and left my RRSP account open. In 2019 I cash out my RRSP and closed my account. I received CAD $ 8550 and paid 25% withheld tax CAD $2141. Received check of CAD $ 6424. Which is equivalent to the US $4710. As per US taxes, I don't have to file form 8938 or FBAR. I don't have any income or account left in Canada. How do I report this income in the US? Any help is appreciated.
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Cash out RRSP less than $10,000 how to report to IRA

Post by nelsona »

You need to knw the value when you moved to US (in USD at that time). Then your report ALL the incme (8555) in USD as gross pension, and then whatever grew since 2010 as taxable pension. Then you use the 25% tax on form 1116 for credit. Explained here MANY times.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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