Day Trading in IRA/401(k) as Canadian Resident

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canadiandeserter
Posts: 58
Joined: Sun Mar 01, 2015 10:52 pm

Day Trading in IRA/401(k) as Canadian Resident

Post by canadiandeserter »

The CRA may not look kindly on day trading in a TFSA and may treat the trading activity as business.

Would the same apply to IRAs or 401(k) accounts that have no Canadian contributions? Does the tax treaty protect US retirement accounts from being considered business income?
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Day Trading in IRA/401(k) as Canadian Resident

Post by nelsona »

Yes, the treaty defines these accounts be treated strictly as pension accounts by Canada.
I know of no IRS rules which would harm these accounts for excessive activity, although some investment firms may have trading limits on these tyoe of accounts.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
canadiandeserter
Posts: 58
Joined: Sun Mar 01, 2015 10:52 pm

Re: Day Trading in IRA/401(k) as Canadian Resident

Post by canadiandeserter »

How about the CRA? Could Canada treat Roth IRAs and 401(k) accounts like TFSAs and tax day trading as business income? Or would the treaty defining them as pensions protect any gains from being treated business income?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Day Trading in IRA/401(k) as Canadian Resident

Post by nelsona »

Reread what I posted!

"Yes, the treaty defines these accounts be treated strictly as pension accounts by Canada."
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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