future retirment

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.

Moderator: Mark T Serbinski CA CPA

chris
Posts: 5
Joined: Thu Dec 23, 2004 3:12 pm

Post by chris »

let me just say,we are not moving to canada for the health care!my wife is a nurse and we are surrounded by relatives in the medical field.the reason for the change of heart is ultra obvious to anyone who can read a newspaper,and can think for themselves,but in the U.S. there is a large portion of people who feel safer by being told what to think.I have no more hope for the U.S. to ever straighten out sorry.now that said (are there any kind folks who have already done what i'm planing who could give pointers?)thank you.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

So what you're saying is that the US is a great place to live, but I wouldn't want to invest there.
[:p]

<i>nelsona non grata</i>
chris
Posts: 5
Joined: Thu Dec 23, 2004 3:12 pm

Post by chris »

Im back! I was in Quebec and bought a house while there.Ill tell you the most interesting part of all was playing the exchange rate game.When you deal with banks to make wire transfers it seems like they not only rip you off with a couple percent but they seem to bind up the process until the rates are more in there favor.Very nerve racking!The next step will be to get the wife her citizenship.I just want to inform her of all the negatives before she does...Question...:She has been building on her company retirement plan for years,is it best to sell before moving to canada or become a canadian here and bring your net worth with you when moving to canada in the future?[?]
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

If its a retirement plan, if she 'takes it with her', she will be fully taxed and penalized, so take that into consideration in your decision.

If she does it before becoming Cdn resident, she will pay full IRS tax, sate tax, and 10% penalty.

If she takes it after going to Canada, she will be fully taxed in US as above (except for state tax) but wll ALSO have to report it in Canada and pay Fed and Provincial tax as well, getting 'credit' for her US tax.

Since these are retirement funds, she is likel ybest to treat them that way: leave them where they are until retirement.

IF she has investments outside her retirement accounts, Canada will consider them as having a new value the day she moves. US of course, will continue to tax her, since she is american.



<i>nelsona non grata... and non pro</i>
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