physical presence in US with IRA

rsmith · Post by **rsmith** » Fri May 18, 2007 2:48 am

Am Cdn citizen with IRA from prior US employment. If I begin to take distributions from that IRA, I have been advised to limit my time in US to 30 days at a time so I do not jeopardize residency status with potential IRS tax`implications. Specifically, I must limit my physical presence in the U.S. for 31 days in the current year and 183 days during the three-year period that includes the current year and the two years immediately before it.
Does this restriction only come into play if and when I start to take distributions from the IRA?
Does it matter if the (US) investment is an IRA or 401k? (visa vis the above travel restriction).

Tks!

nelsona · Post by **nelsona** » Fri May 18, 2007 6:31 am

You have badvised incorrectly. If you are a resident of canada, your presence in US, as lng as it is not 183 days will not make you resident there.

Besides, whether or not you are withdrawing IRA has nothing to do with this.

And ecven if you were to be in US for prolonged period, the result would not be a greater US tax on your IRA, it would be less.

So, dump the 'adviser'.