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Hello there ,
I am a Canadian Citizen Living in US and i also have a US Green card.
I moved to US from canada back in 2011 and since then i have been filing IRS forms 3520 and 3520A for my children's RESP i had when i was living in Canada.
I was paying unnecessary taxes on gains in RESP even though those gains were not accessible to me, hence i withdrew my contribution to RESP ( Around 20K CAD) and left the gains and interest in the accounts , the govt grant went back to the govt.
My question is - would my withdrawal of my contributed money of $20K is taxable in US ?note that when i contributed money to RESP - it was already tax paid ( in canada) after tax money and as such it should not be taxable again in US ...what are your thoughts about this ?? and if you can help me prepare these forms for Tax year 2013 ...
The withdrawl is not taxable in US. Of course any gain that was trigger by the sale of the investments is.
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
Hi Nelson,
Yep - thanks for the reply ...thats my understanding as well !
Regarding gains - well i only got the amount which i originally contributed back ..the gains are still remaining in account and the bank wont let me access the gains portion anyways.