LIRA - can I get US non-taxable deduction question

[path]

Nelsona

You mentioned that a LIRA's bookvalue (when you entered the US) does not qualify for the US non-taxable deduction.
My question is - is this true for all LIRA's?

BACKGROUND
On the keatsconnelly forum you said
"By IRC 72(w), LIRAs that are funded by pension money, as opposed to self-funded RRSPs, are considered fully taxable in US"

My LIRA plan had a company match $-for-$ - up to 5% of my wage (with a some max).
It was optional that I contribute.
The 5% that I contribued was tax free - as it was a retirment contribution.
So half the contribution came from the employer and half came out of my wage (self-funded).
So it was self funded - at least 50%.
Do I have a leg to stand on here :-)

thanks

[nelsona]

Nope.

since your funding wasn't subject to Cdn tax, and it was an employer-sponored fund, it is a pension. That is what 72(w) refers to. besides, most people put *something* towards their company pension, it's still fully taxable.


If it had been a true group RRSP, it would not be locked-in.