I have been living & working in the US for 17 yrs & am moving back to Canada in June. I have had permanent residency in US for about 15 yrs & am willing to relinquish my status as I do not plan to live in the US in the future. I have a few questions about taxes, 401ks etc. I want to make sure I do everything correctly so I don't get myself into any hot water on either side of the border.
1. Do I have to apply for a departure permit?
2. Do I have to "officially' relinquish my green card to avoid tax headaches?
3. I have a 401k with my employer...not a lot of money...less than $20000. What is the best way to handle this...cash it out, leave it where it is, convert it to an IRA (roth or regular), or what???
4. I have about $70000 in a money market account (my down payment for a home)...what is the best way to move that money into Canada & are there any requirements for notifying any govt agency when I do?
5. I know I will have to file income tax returns for both countries next yr...is there anything special regarding that that I should know?
I know..that;s a lot of questions! LOL. Thank you in advance for whatever help anyone can offer!
Canadian citizen/US GC holder moving back to Canada
Moderator: Mark T Serbinski CA CPA
1. no
2. yes
3. convert to Roth BEFORE returning to canada
4. By check. As long as you don't bring the money in cash across the border, you have nothing to notify, the banks take care of that.
5. make sure you recieve all US income before you return, and take care of point #3.
2. yes
3. convert to Roth BEFORE returning to canada
4. By check. As long as you don't bring the money in cash across the border, you have nothing to notify, the banks take care of that.
5. make sure you recieve all US income before you return, and take care of point #3.
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
Well, I called Fidelity re my 401k & they say that it takes about 6 weeks for my employer to notify them of my separation from them so I cannot change anything before I move to Canada as I am leaving about a week after my last day! So what would be my other options? The guy I spoke with said I can leave it in my current plan & just pay a fee of $2/quarter. It is a traditional 401k but the employer does allow you to leave it with their plan, just pay the quarterly fee. Is that something you think would be ok to do? I just hate to cash it out.
Also, I spoke to someone from the IRS today (about some other issues) & I just asked about the departure permit. They said I HAD to get one but all she could tell me was the info posted on their website which is very confusing. Just wondering, since you told me I did not have to get one...what makes me exempt? You seem to know a lot more than their employees! Thank you!
Also, I spoke to someone from the IRS today (about some other issues) & I just asked about the departure permit. They said I HAD to get one but all she could tell me was the info posted on their website which is very confusing. Just wondering, since you told me I did not have to get one...what makes me exempt? You seem to know a lot more than their employees! Thank you!
I would not cash it out after leaving either.
As long as your brioker is willing to let you keep the account after you leave US, I would leave it there.
But you need to make absolutely sure of this -- it doesn't sound like you've asked that question. if there is any doubt, you need to find another broker and put your funds in a roll-ver IRA.
As to 1040C or 2063, I've never heard of anyone needing to file it, or being punished for not doing it. Forget about it -- as well as ever bothering to call IRS telephlunkies.
As long as your brioker is willing to let you keep the account after you leave US, I would leave it there.
But you need to make absolutely sure of this -- it doesn't sound like you've asked that question. if there is any doubt, you need to find another broker and put your funds in a roll-ver IRA.
As to 1040C or 2063, I've never heard of anyone needing to file it, or being punished for not doing it. Forget about it -- as well as ever bothering to call IRS telephlunkies.
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