[quote="stewak2"]Also, the 401K/RRSP agreement only applies to employer sponsored plans.
Presumably, you'd need an employer sponsored TFSA?[/quote]
I wanted to clarify this. Does this mean that if we want to add extra to an RRSP, we need to do so through the employer sponsored RRSP DH has? If we were to open another RRSP somewhere else, it would not be protected from the IRS?
2008 Budget TFSAs
Moderator: Mark T Serbinski CA CPA
All RRSP growth is sheltered, and has been for many years. That is why you file Form 8891.
However until now, no RRSP contributions have been DEDUCTIBLE on one's 1040. Now, as a result of the new treaty, at least contributions made thru one's Cdn employer are deductible. Contributions made to personal RRSP will continue to be non-deductible, but will continue to be sheltered.
However until now, no RRSP contributions have been DEDUCTIBLE on one's 1040. Now, as a result of the new treaty, at least contributions made thru one's Cdn employer are deductible. Contributions made to personal RRSP will continue to be non-deductible, but will continue to be sheltered.
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
[quote="nelsona"]All RRSP growth is sheltered, and has been for many years. That is why you file Form 8891.
However until now, no RRSP contributions have been DEDUCTIBLE on one's 1040. Now, as a result of the new treaty, at least contributions made thru one's Cdn employer are deductible. Contributions made to personal RRSP will continue to be non-deductible, but will continue to be sheltered.[/quote]
Thank you. I assume this would only benefit me on my 1040 if my itemized deductions exceeded the standard deduction?
However until now, no RRSP contributions have been DEDUCTIBLE on one's 1040. Now, as a result of the new treaty, at least contributions made thru one's Cdn employer are deductible. Contributions made to personal RRSP will continue to be non-deductible, but will continue to be sheltered.[/quote]
Thank you. I assume this would only benefit me on my 1040 if my itemized deductions exceeded the standard deduction?
[quote="nelsona"]No. Pension deductions are 'above the line' deductions taken off gross income, not part of Schedule A.[/quote]
Thanks so much for being so quick to answer all my questions! As per the above answer, if I don't usually get anything back from the IRS except for the child tax credits, then does it matter whether I include the pension deductions or not?
Thanks so much for being so quick to answer all my questions! As per the above answer, if I don't usually get anything back from the IRS except for the child tax credits, then does it matter whether I include the pension deductions or not?
In your current situation, no.
However most married couples with 2 incomes could see their US income rate jump over the Cdn rate if their RRSPs are not deductible in US.
Or, those who choose to file MFS.
But, generally this provision was put in the treaty to benefit Cdn commuters wh owork in US, but who could not benefir from 401(K) plans.
However most married couples with 2 incomes could see their US income rate jump over the Cdn rate if their RRSPs are not deductible in US.
Or, those who choose to file MFS.
But, generally this provision was put in the treaty to benefit Cdn commuters wh owork in US, but who could not benefir from 401(K) plans.
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
Thanks! I need to go back through all your replies and write down things like this, especially that may apply at a later date.
One more question on the TFSAs---for people like us, with medium income, who don't ever owe the IRS once we've used the foreign tax credits, does it matter so much that we don't know yet whether the IRS will recognize TFSAs as tax-exempt? Even if they didn't, wouldn't we still be OK using the foreign tax credits? Is the danger that they might grow to a higher amount and then be taxed?
One more question on the TFSAs---for people like us, with medium income, who don't ever owe the IRS once we've used the foreign tax credits, does it matter so much that we don't know yet whether the IRS will recognize TFSAs as tax-exempt? Even if they didn't, wouldn't we still be OK using the foreign tax credits? Is the danger that they might grow to a higher amount and then be taxed?