Closing US Health savings account (HSA)

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nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Closing US Health savings account (HSA)

Post by nelsona »

Non-medical withdrawals, even if over 65, will be considered income in both US and Canada (include on pension line). You can use the US tax and penalties as foreign tax credit.
Roth withdrawals are included on the pension line as well, and then the non-taxable portion would be deducted on line 25600, as treaty excluded income.
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
skarme312
Posts: 9
Joined: Mon Apr 26, 2021 2:24 pm

Re: Closing US Health savings account (HSA)

Post by skarme312 »

Just wanted to provide some information for others viewing this post. I closed my HSA and claimed the tax paid (including the 20% additional tax) as foreign tax credit on my canadian return. My return was flagged, and CRA requested more info regarding the foreign tax. The claim was then approved by the CRA after I provided by IRS transcript along with my US tax return filing. Hope this helps others out and thanks to nelsona for answering my questions.
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