I moved very late in 2007 to the US, so the 2008 tax return is essentially my first here in the US. My concern is how do I (or do I) need to declare that I have a Locked in retirement fund back in Ontario? The form 8891 which is frequently mentioned here does not appear to apply to this type, so I am a little bewildered.
Any interest or yearly dividends are rolled immediately back into it, I do not receive a cent. I have nothing to report on my Canadian return, so I'm confused how to declare it for the US.
Thanks
LRIF or LIRA - how do I declare on US taxes
Moderator: Mark T Serbinski CA CPA
Don't be confused. A LIRA or an LRIF and simply RRSPs or RRIF with a lock feature. They are covered by 8891.
You use 8891 to defer US taxation on internal earnings until you begin withdrawing funds. Its important to file 8891 for each account.
The other important thing for you to do is determine the BOOK value on your account on January 1, 2008 (that's 2008 not 2009). This bbok value will essentilly be the amount of RRSP/RRIF/LIRA/LLIF withdrawls you make while in US that are not taxable in US.
When you begin to draw down or collapse your funds, you will use this figure (which doen't appear anywhere on form 8891, btw) to exclude some or all of the withdrawal from US taxation.
You don't nned to concern yourself with that now, but you do need to record this figure in your records, for each account you have.
You use 8891 to defer US taxation on internal earnings until you begin withdrawing funds. Its important to file 8891 for each account.
The other important thing for you to do is determine the BOOK value on your account on January 1, 2008 (that's 2008 not 2009). This bbok value will essentilly be the amount of RRSP/RRIF/LIRA/LLIF withdrawls you make while in US that are not taxable in US.
When you begin to draw down or collapse your funds, you will use this figure (which doen't appear anywhere on form 8891, btw) to exclude some or all of the withdrawal from US taxation.
You don't nned to concern yourself with that now, but you do need to record this figure in your records, for each account you have.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Thank you, a few further questions then
When they ask about in 7a ' Distributions received from the plan during the year.' Are they referring to amounts which were rolled back in? Since I on't have a tax slip...where might I find this out?
And then in 7b 'Taxable distributions received from the plan during the year' I'm not sure what to put, I didn't receive anything
Also in 10 'Undistributed earnings of the plan during the year'
- everything was rolled back in so I would say - there were no undistributed?
As for [b]Book[/b] value - I note this down somewhere and when I decide to start drawing funds (in the year 2035 or so!) then I use this? Obviously in 2035 it will be wroth a different amount, crossing my fingers it's more of course)
Sorry to be a noob here
When they ask about in 7a ' Distributions received from the plan during the year.' Are they referring to amounts which were rolled back in? Since I on't have a tax slip...where might I find this out?
And then in 7b 'Taxable distributions received from the plan during the year' I'm not sure what to put, I didn't receive anything
Also in 10 'Undistributed earnings of the plan during the year'
- everything was rolled back in so I would say - there were no undistributed?
As for [b]Book[/b] value - I note this down somewhere and when I decide to start drawing funds (in the year 2035 or so!) then I use this? Obviously in 2035 it will be wroth a different amount, crossing my fingers it's more of course)
Sorry to be a noob here