CrossBorderCommuter IRA LumpSum 1040NR

[AuntiD]

Tax advice on completing 1040 NR /NEC/Form 8833?

CDN Resident: Cross Border daily Commuter, employed across the line for 5 years. Now retired.
Annually filed Canadian (w/RC268) and 1040NR tax returns.

2024: Closed out Lump Sum IRA Simple (Employer matching contributions). (45K USD)
Schwab withheld 10%. Issued 1099R (Box 7)
Various web sources: opinion varies whether IRA funds are effectively connected income.
Options:
File Page 1 of 1040 NR, as effectively connected income with graduated rates.

Or: File using NEC - claim 15% Tax Treaty and include cheque ( 5%) for balance of funds owed.
Is Form 8833 required with US tax return?

Intend to transfer ( Schedule 7*) to RRSP on hopefully tax neutral basis. Claim FTC.
!5% Witholding will closely match Cdn tax owing.
Thank you for advice.

[nelsona]

IRAs can be considered connected. You choose whichever is least tax. Then use that tax towards your foreign tax credit on the Cdb side.