Taxability of Withdrawals from Lockeed-In RRSP / LIRA in US

[rgiustini]

With regard to your reply to andydc regarding collapsing a LIRA:

My wife and I both created Locked-in RRSP's before leaving Canada and now permanently reside in the US.
My account was originally funded by a defined-contribution plan in Canada. I contributed and my employer matched a percentage. When I left my employment, I transferred the funds into a locked-in RRSP.
My wife's account was funded by the commuted value of her pension plan (although she made contributions to the plan whaile she was employed).

I think I understand from your answer to andydc that her withdrawals would be fully taxable on her 1040 return. Is that correct?
Since my contributions were voluntary and matched by my employer, and this was a defined contribution plan, would my withdrawals from the LIRA be fully taxable in the US, or would they follow the "tax-free basis" rule for an RRSP?

[nelsona]

In my opinion, both LIRAs are fully taxable, as they were both employer-sponsored plans, funded entirely as a result of being an employee, and the contributions were not subject to taxation in canada nor US, they are subject to Section 72(w).

[rgiustini]

Thank you, nelsona. Unfortunately, that makes sense.