Withdrawing an IRA when in Canada

[CdnAmerican]

I am a US/Cdn dual citizen, living in Canada for the foreseeable future. I have a small IRA in the US. I understand that the US is now allowing people to withdraw from their IRA if they have had a job reduction/loss.
- I am unclear on how they define 'job reduction'; I am self=employed and have had some reduction in work, but not sure if that qualifies.
- Are there be tax implications for withdrawing this IRA I should consider? My income is low enough that my US tax is always offset by the FEIC and/or FTC.

[nelsona]

The rules are not clear, other than if you actually contract COVID, but the tax ramifications are that you can take upto $100K tax-DEFFERRED, for 3 years. You can then either replenish your account, or pay the tax (ie. include it in income). There would be no 10% early withdrawal penalty either way.

As with most things pension, CRA will treat the amount as income, to the extent IRS does. So,until it appears on your US tax return, it won't be on your Cdn tax return.

[CdnAmerican]

Thanks nelsona! That makes sense. I am surprised that CRA would count it as income, though, since the IRA predates my entry to Canada. I would have assumed that only gains incurred in 2020 would count as income, especially since I've been counting gains in it during stock sales after moving to Canada (I didn't handle this well, as I should've just left it alone upon leaving the US).

[nelsona]

IRAs are fully taxable in Canada. Only contributions made while a CDn resident that were not deductible can be withdrawn tax-free. That doesn;t apply here.