Taxable Portion of RIF Established with Employer Funds

[lukehiggins]

My question regards the taxable portion for withdrawals from a RIF.

I am now a resident in the US. Prior to moving here 17 years ago, my Canadian employer collapsed a pension plan and paid out lump sums for the commuted value. I received two pieces - one was placed into a LIRA (converted now to a LIF) and the other piece, because it was for non-qualifying pension benefits, into an RSP (now an RIF). I did not contribute anything to either plan. Based on earlier forums, I assume that 100% of the amount I receive from the LIF is taxable in the US as 100% of the funds were contributed by my employer. Is the same true for the RSP? That is, as the employer contributed 100% of the funds originally, I cannot use the cost basis to reduce the taxable amount.

[nelsona]

LIFs and LIRAs are 100% taxable income in US. Only self-funded non-employer sponsored RRSPs and RRIFs may or may not have some cost bases excludable from US taxable income.