Hsa

[brianbbc]

I’m wondering if there is any actual publication by the cra for treatment of usa based HSA distributions as a Canadian resident who files with the cra. In searching, a few tax experts report the HSA is not recognized as a registered tax-sheltered account by the CRA, so all gains in it are taxed normally like any other non-registered foreign investment account, and doing an income-inclusion calculation each year (The HSA is non-taxable in the US, taxable in Canada) This reporting and compliance can be a real headache as the cra is not clear on this topic. I’ve been holding the funds in my hsa in a total us stock market account, receiving and reinvesting the dividends as normal in a mutual fund, and have not made any distributions (qualified or non qualified) since moving back to Canada. It has increased in value simple due to the rise of the stock market.

[nelsona]

The HSA is protected by the treaty, since it is set up primarily to provide employee benefits, thus is not taxable in Canada unless taxed in US.

Article XXI(2)

[brianbbc]

I now it’s a busy time, thanks so much