Canadian - non resident IRA holding TBills and CDs

[Russ]

I worked in the US for many years and set up a self-directed IRA that's pretty large via TD Ameritrade (which Schwab bought?). I returned to Canada a few years ago and am still able to purchase stocks, etc. in that IRA from my online account.

Now I've bought a CD and a couple of US Treasury bills and just wanted to make sure that there will be no problem. I hadn't thought this would be a problem as I assumed any interest, etc. would simply be kept in the IRA. However, I've been looking over the internet, YouTube, etc. and can't seem to find this particular question answered.

1. So, is this okay to do for a non-resident with an existing IRA?
2. Would the US Gov't send me some kind of tax form for the interest I made and if so, what would I do?

Thanks for any help.

- R

[nelsona]

You said the T-Bills and CDs are in your IRA. So there is no tax owing nor any tax slip issued. You will simply pay tax in US and Canada when you withdraw funds out of your IRA (subject of course to being able to reduce the taxable ammount in Canada by the undeducted contributions you are making to the IRA.


by the way, you still need to be making EARNED INCOME in US to be able to contribute to an IRA. Otherwise, you can only move money around, not make new contributions.

[Russ]

Thanks Nelson.