Roth IRA Withdrawals by Canadian Resident
Moderator: Mark T Serbinski CA CPA
Roth IRA Withdrawals by Canadian Resident
:? Both my wife and I have Roth IRAs , we funded over the years, while living as a permanent resident in the USA. We returned to Canada a little over a year ago, returned our green cards, did our departure tax filings, etc. I inquired with regards to Roth withdrawals to Vanguard, who is the trustee of these Roths. To my surprise I was informed that there would be a 15 % withholding for periodic withdrawals and 30% withheld for a lump sum withdrawal. I'm just confused because the Roths were funded from after tax income, would that be the correct treatment?
Your Roths should not be taxed. You need to get another opinion.
As long as you are over 59.5, and have the account for 5 years, there is no issue whatsoever. However below that age, you may have to "prove" to IRS that your Roth withdrawl is non-taxable, which may be why they are insisting on some withholding.
However, if they insist on withholding, you remedy will be filing a 1040NR, but that should only be used as a last measure. You need to push this up the food chain.
As long as you are over 59.5, and have the account for 5 years, there is no issue whatsoever. However below that age, you may have to "prove" to IRS that your Roth withdrawl is non-taxable, which may be why they are insisting on some withholding.
However, if they insist on withholding, you remedy will be filing a 1040NR, but that should only be used as a last measure. You need to push this up the food chain.
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