Having worked for a large Canadian corporation for 10 years before moving to the USA, I have pension that I will start getting at 65.
I do have an option to instead have a lump sum transferred into a LIRA (Locked In Retirement Account).
I expect to be able to manage the LIRA to grow to an amount that will provide income equal to what the pension would provide. Would there be any difference in taxation? The pension would be aprox. $1000 per month at 65. Assume the RRSP/RRIF withdrawal were also $1000 per month at 65.
Thank-you for your comments.
Pension versus LIRA RRSP after moving to US
Moderator: Mark T Serbinski CA CPA
.. but I will admit that the appication of WEP is so uneven, that it runs the spectrum of no WEP for Cdns, to WEP applied (illegally) on OAS, so I would not count on anything when it comes to WEP>
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"No. Technically, only govt pension (CPP for canada) affects WEP. Not foreign pensions."
I guess this should also be "technically" true regardless of whether the retiree is a US citizen or not, right?
What do you think the WEP interpretation would be if the individual had worked for the Canadian federal government and collected a civil service pension? It's technically a "government pension" but fundamentally different from CPP. Seems to me that this gov't pension is not substantially different from pension from any Canadian corporation.
I guess this should also be "technically" true regardless of whether the retiree is a US citizen or not, right?
What do you think the WEP interpretation would be if the individual had worked for the Canadian federal government and collected a civil service pension? It's technically a "government pension" but fundamentally different from CPP. Seems to me that this gov't pension is not substantially different from pension from any Canadian corporation.
CPP is social security. WEP deals with social security.
In any event, when they ask about your foreign income sources when you file for SS, you will be at the mercy of that agent's interpretation, at that time.
There is little planning that can be done to mitigate WEP, so why worry.
In any event, when they ask about your foreign income sources when you file for SS, you will be at the mercy of that agent's interpretation, at that time.
There is little planning that can be done to mitigate WEP, so why worry.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing