Cost of RRSP

ikeaidea · Post by **ikeaidea** » Thu Feb 17, 2011 1:21 pm

http://www.irs.gov/pub/irs-pdf/p575.pdf

Hi Nelsona,

I read the Pub 575 and in the paragraph for "foreign employment contribution while nonresidnet alien" for the cost. It looks like RRSP is the contirbution that cannot include as cost.

Could you clearify me on that? Sorry the wording of the Pub is hard for me to be understand.

Thank you!

nelsona · Post by **nelsona** » Thu Feb 17, 2011 2:52 pm

This is referring to employer-sponsored pensions, not RRSPs.

canadian pensions (and any subsequent LIRAs) are fully taxable upon withdrawal.

ikeaidea · Post by **ikeaidea** » Thu Feb 17, 2011 3:03 pm

sorry I am confused again. I mean for US tax, the cost of RRSP. Do you mean this PUB doesn't apply for RRSP?

nelsona · Post by **nelsona** » Thu Feb 17, 2011 4:19 pm

Of course I'm talking about US tax. You are reading a US publication.

RRSPs are not employer-sponsored pensions discussed in that Publication, or section 72(w) of the IRC.