Roth IRA Canadian Resident, US Citizen

[nabstar]

Hey Guys - really impressed with everyone's knowledge here.

Individual is US Citizen(green card) and Canadian Resident(Starting Mid 2013). Their parents contributed to this persons ROTH IRA in mid 2014 and 2015.

Firstly does parents contribution count towards "Canadian contribution". The way I read it - is that it does - so it loses its status on that day, and all accrued income is taxable after point. Also assume contributions are not deductible in Canada right?

If thats the case - I get the interest, and dividends accrued are taxable. What about the unrealized gain or loss on shares invested. Can I net these all in Canada? Say accrued capital loss of (3k), and dividends of 2K. Therefore show other income from ROTH IRA (1k). I doubt it - and assume (-3k) should be capital loss and can only be used if there is a capital gain etc and that income should be classified the same way.


Thanks a million

[nelsona]

So, forget the fact that the parents contributed, there is no parental contribution rule -- the Roth owner made the unwise contribution.

The Roth becomes an ordinary account at that point (think of it no longer bein ga Roth).

So, year-to-year taxable income is calculated just like any other investment account. Contributions are not tax deductible.

[nabstar]

Fair enough - So that means since shares not sold - don't need to worry about accrued gain(loss) on shares?

Nelsona - how you acquired all this knowledge I would love to know.