401K Strategy

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
gdhender
Posts: 2
Joined: Sun Mar 17, 2024 4:08 pm

401K Strategy

Post by gdhender »

Hi all,

A question for those who work(ed) in the US and had 401K accounts - is there a particular strategy to be followed if one plans to eventually return to Canada (i.e. 401K regular vs. Roth)?

Thanks!
Top
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: 401K Strategy

Post by nelsona »

Yes. fund as much as possible, your Roth401(k) while working vs. your 401(k). Then when you stop working, but before reestablishing Cdn residency, convert as much of your 401(k) as you can, paying US-only tax on that conversion at that time, making the Roth portion non-taxable forever afterwards.
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
Top
Post Reply

Return to “Canada / United States Tax & Accounting”