401k vs Roth 401k for Canadians working in U.S. temporarily

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venias
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Joined: Sun Oct 11, 2020 6:57 pm

401k vs Roth 401k for Canadians working in U.S. temporarily

Post by venias » Sun Oct 11, 2020 7:06 pm

As a Canadian citizen working in the U.S. temporarily, what is the best option for contributing to a US retirement savings account if I am planning on returning to Canada within 2-5 years? I have an employer match, and I'm expecting my income to decrease upon my return to Canada. I've read some conflicting information on the benefits of a traditional vs roth 401k in this scenario.

nelsona
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Re: 401k vs Roth 401k for Canadians working in U.S. temporarily

Post by nelsona » Tue Oct 13, 2020 6:17 pm

You are probably better off with Roth401(K), because of the fact that you will be holding these finds for a long tome, and the growth will be compleyely sheltered in both US and Canada. 401(k) will merely be deferred taxation. Consider: is your US tax rate now going to be higher that your Cdn taxrate in future? I doubt it, so so with Roth401(k)
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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