Can't open Roth IRA if I am subject to FATCA reporting

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
Fug1
Posts: 57
Joined: Sun Mar 09, 2014 12:00 pm

Can't open Roth IRA if I am subject to FATCA reporting

Post by Fug1 »

I am a Canadian citizen who is a USA permanent resident.

I was looking at opening a Schwab Roth IRA account and came across a strange restriction. The application requires that I certify I am "exempt from FATCA reporting". I do submit form 8938 every year to report an RRSP in Canada. Why would that prevent me from opening a Roth IRA in the USA?

The application form is here: https://www.schwab.com/public/file/P-34 ... 062218.pdf

The relevant line is in section 5 (authorization to open account).

Thank you!
Fug1
Posts: 57
Joined: Sun Mar 09, 2014 12:00 pm

Re: Can't open Roth IRA if I am subject to FATCA reporting

Post by Fug1 »

I contacted Schwab and was informed that the requirement to certify I am "exempt from FATCA reporting" only applies to the account I'm opening...not any other accounts I might own. Still, the wording on the form seems wrong to me and I worry when I see phrasing like "under penalty of perjury"!
Post Reply