I have been a resident of Michigan and now Ohio for the past five years and it looks like I will be permanently moving back to Toronto next summer. I opened an IRA/SEP Deposit account with a bank in February. The CD matures 2/23/2006. I don't know the tax implications of holding onto the IRA account when living back in Canada. Should I cash it at maturity and use the proceeds towards my house or RRSP?
David Cameron
Canuck moving back to Toronto
Moderator: Mark T Serbinski CA CPA
The IRA will be subject to US tax and penalty if you collapse your IRA, and will have to be reported in canada as well,if you collapse it after leaving US.
If you haven't owned a home in 2 years, you can exempt yourself from penaslty (not tax) an the first $10,000 you withdraw, but this will merely make your Cdn tax bill higher.
Best leave it in US until a year when you have little world income.
<i>nelsona non grata... and non pro</i>
If you haven't owned a home in 2 years, you can exempt yourself from penaslty (not tax) an the first $10,000 you withdraw, but this will merely make your Cdn tax bill higher.
Best leave it in US until a year when you have little world income.
<i>nelsona non grata... and non pro</i>