Is there is any reason not to specify my Canadian (NRA) spouse as a beneficiary on my U.S. Roth IRA (election taken with CRA) or 401k? Will it cause any complications for her in the U.S. or Canada if I pass away? Would it create any additional filing requirements for her that she should know about?
Thanks very much.
Canadian Beneficiary on US 401k, Roth IRA -- Any Issues?
Moderator: Mark T Serbinski CA CPA
As the beneficiary, she will of course inherit these accounts, and will at that time have filing requirements.
Not sure what your question is: are you asking if these should simply pass to your estate (and then to her) rather than to her directly?
Not sure what your question is: are you asking if these should simply pass to your estate (and then to her) rather than to her directly?
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
Thank you and sorry for not being clearer. Let me try again.
1. Any reason not to pass the funds directly to my wife rather than through my estate?
2. What would be my wife's U.S. obligation. Would she need to file 104O NR or anything else? If I hadn't starting taking distributions, could she keep them tax deferred in the U.S?
3. Same question on Canadian side. If i hadn't started taking distributions could she keep them tax deferred in Canada? Would my treaty election on the Roth IRA pass automatically to her?
Thanks so much for answering questions, even on a Sunday evening.
[quote="nelsona"]As the beneficiary, she will of course inherit these accounts, and will at that time have filing requirements.
Not sure what your question is: are you asking if these should simply pass to your estate (and then to her) rather than to her directly?[/quote]
1. Any reason not to pass the funds directly to my wife rather than through my estate?
2. What would be my wife's U.S. obligation. Would she need to file 104O NR or anything else? If I hadn't starting taking distributions, could she keep them tax deferred in the U.S?
3. Same question on Canadian side. If i hadn't started taking distributions could she keep them tax deferred in Canada? Would my treaty election on the Roth IRA pass automatically to her?
Thanks so much for answering questions, even on a Sunday evening.
[quote="nelsona"]As the beneficiary, she will of course inherit these accounts, and will at that time have filing requirements.
Not sure what your question is: are you asking if these should simply pass to your estate (and then to her) rather than to her directly?[/quote]
She can inherit the Roth without issue, and the rothe stays intaxt, so I would be passing that directly.
Inherited IRAs/401(K) typically must follow a withdrawal schedule similar to yours. Otherwise, they are collapsed into teh estate and tax paid by the estate at time of death (US and Canada).
Inherited IRAs/401(K) typically must follow a withdrawal schedule similar to yours. Otherwise, they are collapsed into teh estate and tax paid by the estate at time of death (US and Canada).
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