keeping ira heading to Canada

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moi
Posts: 44
Joined: Sat Aug 13, 2011 9:47 am

keeping ira heading to Canada

Post by moi »

Assuming my income stays in the lowest tax bracket in Canada 20%, I can see the arguement for leaving my ira as is, and NOT rolling it to a Roth. Even though I will have to pay the US 15%, the foreign tax credit will get some of that back. Whereas, if I do the rollover on 200,000,00 I would loose sooo much to penalties and taxes, it wouldn't of been worth it.
Unless, I am still missing something in this scenario? Any other thoughts?
JGCA
Posts: 754
Joined: Thu Nov 18, 2010 3:05 pm
Location: Montreal, QC Canada

Post by JGCA »

I suggest you read my previous post to you on this from a few months ago no, it is not the best position to keep it as is because you will take it out sometime and you will be subject to tax at higher than 20% for sure. It may be beter off now from a cash flow point of view to leave it as is but it will defintely cost you more tax in the future.
JG
nelsona
Posts: 18677
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

That is why Roth is much better solution that leaving in IRA.
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
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