I am a US citizen, Canadian resident.
Is there ever a circumstance where a withdrawal from a US IRA account can receive the pension credit on a Canadian return? This is my reason for asking - I had a 401k in the US that was rolled over to an IRA. My entire work history is in the US and I don't have any Canadian sourced income. Essentially my IRA is my pension account. Have you heard of the CRA allowing the pension credit in this type of senario?
Withdrawals from US IRA - no CRA pension credit
Moderator: Mark T Serbinski CA CPA
Unfortunately IRA income is specifically excluded from the Pension income amount, regardless of age. this does seem unfair, and I have no idea why IRAs are singled out.
I'd be tempted to request the pension amount, and if denied, ask for a reason. This might lead to (a) a possibility that the treaty could be used, or (b) a possible solution that you could apply to your US account.
If this doesn't work, and you are over 65, I would be looking to create eligible pension amounts by buying an annuity that generates the $2000/yr. There are plans out there that do this.
If you are married, your spouse's pension can be split with you to get you the $2000 as well.
I'd be tempted to request the pension amount, and if denied, ask for a reason. This might lead to (a) a possibility that the treaty could be used, or (b) a possible solution that you could apply to your US account.
If this doesn't work, and you are over 65, I would be looking to create eligible pension amounts by buying an annuity that generates the $2000/yr. There are plans out there that do this.
If you are married, your spouse's pension can be split with you to get you the $2000 as well.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best