401k vs Roth 401k for Canadians working in U.S. temporarily
Moderator: Mark T Serbinski CA CPA
401k vs Roth 401k for Canadians working in U.S. temporarily
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.
Re: 401k vs Roth 401k for Canadians working in U.S. temporarily
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. Please Search previous posts, no situation is unique as you might think. Happy Browsing