Money in USA

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.

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ejrbeth
Posts: 7
Joined: Fri Feb 05, 2010 12:23 am

Money in USA

Post by ejrbeth »

We are movng back to Canada and our house just sold.
Are there any tax implications/costs/withholding fees for keeping our money in a US bank account. It may remain there for 6 months or so until we buy a place in Canada.

Secondly, I moved my 401k to an IRA then to a Roth IRA, through TD ameritrade.
I have been told that there may be a 30% withholding tax for foreign investors, is this correct and if so how do we avoid this charge.

thanks your help.
Andrew
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Moving the IRA to a Roth is taxable in US, but there should not be withholding, since you are doing this asa US resident.

Absolutely do NOT do the Roth conversion after leaving US, as it ruins its protection from Cdn tax.

Why the firm even considers you "foreign" is questionable.

Roths are not taxable in US after 5 years.

Withholding would apply to some taxable items, but none that you have mentionned.
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
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