Day Trading in IRA/401(k) as Canadian Resident

[canadiandeserter]

The CRA may not look kindly on day trading in a TFSA and may treat the trading activity as business.

Would the same apply to IRAs or 401(k) accounts that have no Canadian contributions? Does the tax treaty protect US retirement accounts from being considered business income?

[nelsona]

Yes, the treaty defines these accounts be treated strictly as pension accounts by Canada.
I know of no IRS rules which would harm these accounts for excessive activity, although some investment firms may have trading limits on these tyoe of accounts.

[canadiandeserter]

How about the CRA? Could Canada treat Roth IRAs and 401(k) accounts like TFSAs and tax day trading as business income? Or would the treaty defining them as pensions protect any gains from being treated business income?

[nelsona]

Reread what I posted!

"Yes, the treaty defines these accounts be treated strictly as pension accounts by Canada."