Tax advantaged investing

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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goldstone
Posts: 32
Joined: Wed May 29, 2019 11:27 am

Tax advantaged investing

Post by goldstone »

I'm trying to learn what tax advantaged investment opportunities may be available to an individual who has a H1B visa and who become US tax resident for 2023 but who will probably be returning to Canada in a few years. He has a 401(a) pension at his workplace.

I have three questions and greatly appreciate any advice on them or suggestions for good places to research these questions.

1. Is it correct that he could put $ 6500 per year into an IRA or Roth IRA ?
2. Are there any other tax advantaged vehicles he could utilize ?
3. What are the tax consequences on these investment vehicles if he returned to Canada ?

Thanks very much for any help.
MarkTwels
Posts: 4
Joined: Mon Jul 31, 2023 9:59 pm

Re: Tax advantaged investing

Post by MarkTwels »

Other tax-advantaged options might include HSAs (Health Savings Accounts) or certain employer-sponsored plans. However, tax implications upon returning to Canada can vary. Seeking advice from a cross-border tax specialist is key—they can help navigate the complexities and guide you toward the most beneficial strategies tailored to your situation. Research-wise, checking official IRS resources and consulting with financial advisors who specialize in international taxation could provide valuable insights!
MarkTwels
Posts: 4
Joined: Mon Jul 31, 2023 9:59 pm

Re: Tax advantaged investing

Post by MarkTwels »

Firstly, for IRAs, the contribution limit of $6,500/year is valid if under 50 (for catch-up contributions). Also, exploring how to backdoor Roth IRA might interest you—it involves converting non-deductible Traditional IRA contributions into a Roth IRA for potential tax benefits.
MarkTwels
Posts: 4
Joined: Mon Jul 31, 2023 9:59 pm

Re: Tax advantaged investing

Post by MarkTwels »

MarkTwels wrote:
> Firstly, for IRAs, the contribution limit of $6,500/year is valid if under
> 50 (for catch-up contributions). Also, exploring how to backdoor Roth IRA(https://www.physicianonfire.com/backdoor/)
> might interest you—it involves converting non-deductible Traditional IRA
> contributions into a Roth IRA for potential tax benefits.
Other tax-advantaged options might include HSAs (Health Savings Accounts) or certain employer-sponsored plans. However, tax implications upon returning to Canada can vary. Seeking advice from a cross-border tax specialist is key—they can help navigate the complexities and guide you toward the most beneficial strategies tailored to your situation.
stephanysims
Posts: 1
Joined: Sun Feb 25, 2024 6:54 pm

Re: Tax advantaged investing

Post by stephanysims »

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