Withdrawal from Nondeductible IRA in Canada

[Jojo]

Scenario: Dual citizen couple living in US for 30 years moves back to Canada at age 60. Spouse B has a nondeductible IRA, ie an IRA with a basis.

Question: does Canada give you any credit for this basis? Do you prorate withdrawals into earnings and contributions, with only the earnings taxable, like in the US?

If the answer is No, we’ll probably convert it into a Roth while still US residents.

[nelsona]

CRA will treat the IRA exactly as IRS does: Whatever is determined to be taxable in US, will be taxable in Canada, year by year.

It would be a good idea to convert what you can to Roth in any event.