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
2 posts • Page 1 of 1
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.
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