IRAs and returning to Canada

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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Mary
Posts: 8
Joined: Tue Jun 14, 2005 2:44 pm

Post by Mary »

I'm a Canadian living in the U.S. and I don't know whether or not I will return to Canada so I'm trying to plan my retirement savings to work well no matter whether I end up in the US or Canada. The other posts indicate that a ROTH is a bad idea in the event I do return to Canada. My other options for additional retirement savings are Traditional IRA's (deductible), a 403B and a 457. Are these three all "equally good" in terms of the tax consequences if I do return to Canada? Thanks!
nelsona
Posts: 16659
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Yes, all retirement type arrangements that you mentioned (non-Roth) are acceptable to Cdn Govt at this point as pensions: fully sheltered until withdrawal, and fully taxed on withdrawal.

ROth IRA, and the upcoming Roth 401(k) are NOT yet protected by treaty or Cdn regulations.

<i>nelsona non grata... and non pro</i>
joec19
Posts: 3
Joined: Thu Aug 18, 2005 7:22 pm

Post by joec19 »

I am a recent college graduate with a job offer in Canada. I have been contributing to my Roth for 3 years. What would you suggest I do if I accept the Canadian job offer?
1) If I close the account, would I not be taxed heavily and charged a fee for taking distributions before 59 1/2 or first home purchase?
2) Could I keep it open in Canada and contribute as a Canadian employee, and would this be a good idea?
3) If I keep a residency in the US, could I avoid these compications?
4) or If I move back to the US when I retire would the Roth still be non-taxible?
Thanks for the help.
nelsona
Posts: 16659
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Answered in other thread.

<i>nelsona non grata... and non pro</i>
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