401k withdrawal strategy for Canadian

[Frosty-Frosty]

I am a 63-year-old Canadian who returned to Canada in 2023 after working in the U.S. on a W-2 for 15 years. During that time, I contributed approximately $400,000 USD to a Traditional 401(k). Since I now work with the Canadian counterpart of my previous U.S. employer, my 401(k) account remains active, but the company has stopped contributing to it since my move to Canada.

I have invested the 401(k) funds in solid ETFs that generate an average yearly return of 10-13%. I am currently still working and fall into a high-income tax bracket in Canada. At the moment, I don’t need to withdraw funds from the 401(k) and don’t plan to do so until after retirement.

What is the best withdrawal strategy for my 401(k) after I retire?

[nelsona]

Not much strategy here.
Since you are no longer living in US, you should not convert this to a Roth.

You could consider delaying OAS to 70, and use the intervening years to take out more than your would later, as you won't be subject to clawback of OAS until 70. If married, 401(k) funds (but not IRA) can be split with spouse.

So, after you stop working, taking only what you need, if any, until 73, when you must take about 4% annually.

[Frosty-Frosty]

nelsona wrote:
> Not much strategy here.
> Since you are no longer living in US, you should not convert this to a
> Roth.
>
> You could consider delaying OAS to 70, and use the intervening years to
> take out more than your would later, as you won't be subject to clawback of
> OAS until 70. If married, 401(k) funds (but not IRA) can be split with
> spouse.
>
> So, after you stop working, taking only what you need, if any, until 73,
> when you must take about 4% annually.

Thanks Nelsona

I am married so will split with my spouse before I start OAS.

[Frosty-Frosty]

Thanks Nelsona

I am married and will certainly delay OAS. Split 401k

[nelsona]

By split 401(k), I mean, split any income you take from it, just to be clear.