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?
keeping ira heading to Canada
Moderator: Mark T Serbinski CA CPA
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