RPP paid in lump sum to RRSP

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GlobalCitizen
Posts: 41
Joined: Sat Jan 03, 2015 8:58 pm

RPP paid in lump sum to RRSP

Post by GlobalCitizen »

When an RPP is distributed as a lump sum, it can be rolled into an RRSP. This is a non-taxable event in Canada. However, what is the proper US treatment of this?

Is this a pension distribution for IRS purposes, or does the income continue to be deferred until it is withdrawn from the RRSP?
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: RPP paid in lump sum to RRSP

Post by nelsona »

This is also non-taxable in US, because it is non-Taxable in Canada. It will be taxable when withdrawn from the RRSP down the road.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
GlobalCitizen
Posts: 41
Joined: Sat Jan 03, 2015 8:58 pm

Re: RPP paid in lump sum to RRSP

Post by GlobalCitizen »

Thank you. That is good to know!
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