RSSP deferred tax means?

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tony
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Joined: Tue Oct 18, 2016 8:50 pm

RSSP deferred tax means?

Post by tony »

Suppose I start working in US Jan 1st (year 1). And, the following year, I choose to defered tax of Canada RSSP until distributed.
I come back to Canada Jan 1st (Year 2) and I withdraw RSSP.

1. DO I need to pay tax to US on withdrawal?
2. If no, why then we need to report its performance every year to US?
nelsona
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Post by nelsona »

1. No. If you are not US resident or citizen, you will not have to file a US rtax return, and will not have to pay tax, even on the income you deferred.
2. You don't. What makes you think you do? You only need to KNOW the non-taxable amount when yopu move, and you keep this number in YOUR records UNTIL you start taking the money out while in US.

Have you bothered to read many of the threads on this site?
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
tony
Posts: 102
Joined: Tue Oct 18, 2016 8:50 pm

Post by tony »

thanks Nelsona.
I read somewhere (dont remember now) saying although it can be deferred you must bear with its nuisance by reporting RSSP gain every year to IRS.
Please let me know, if I choose deferred, do I still need to report it every year?
nelsona
Posts: 18686
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Again, please read correct information on THIS forum.
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
tony
Posts: 102
Joined: Tue Oct 18, 2016 8:50 pm

Post by tony »

What I mean by question #2 is (to use a correct tax term) is that:
need to report RSSP "internal income" to California (I am moving to California).
(i dont' withdraw money from rSSP, just keep it in canada)

Do i still need to do report yearly?
(ref: viewtopic.php?t=9787&highlight=fatca)
nelsona
Posts: 18686
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

yes.
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
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