Contribute to my traditional IRA while residing in canada?

lanman2000 · Post by **lanman2000** » Thu Mar 13, 2014 1:15 am

I want to continue putting money into my traditional IRA in the US but I now live in canada and wonder the tax implications of doing that. Can I deduct the contribution on my US return? Canadian return? If I can't deduct it that's not too big a deal as I deduct my rrsp contribution on the Canadian return each year. I simply want to keep putting money into it and ensure the income in it continues to grow tax free until I retire.

I know that if it was a Roth and I made a contribution to it while residing in canada that would be problematic. I read all about how that makes the Roth cease to be a pension in the eyes of the CRA. There just is very little guidance online around traditional IRAs and what things you can do /should look out for.

Should say I'm dual us/canada citizen living in canada....

Any help is much appreciated!

nelsona · Post by **nelsona** » Thu Mar 13, 2014 9:12 am

If your broker allows it, you certainly can fund your IRA. The contributions are eligible for deduction on your 1040, so you will pay tax on any withdrawal.

Contributions made to your IRA are not deductible in Canada. Later, you will not have to pay tax in Canada on the contribution part you withdraw. Sp keep track of the undeducted contribtions for that purpose.