IRA withdrawal

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moi
Posts: 33
Joined: Sat Aug 13, 2011 9:47 am

IRA withdrawal

Post by moi » Tue Jun 11, 2019 7:06 am

I am a Canadian, living in Canada, with a US IRA.
Assuming my income is less than the basic personal exemption in Canada.
If I withdraw $10,000.00 from my US IRA, and the with holding tax has been collected. In reality, will I get to claim that tax money back from the Canadian gov't through the treaty?

nelsona
Posts: 15929
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: IRA withdrawal

Post by nelsona » Wed Jun 12, 2019 5:00 pm

No, because you are not taxable in Canada due to low income. However, you would (and should) file a 1040NR, reporting the IRA on page one, and get most if not all your withholding back.
Nelsona Non grata. Non pro. Search previous posts. Taking period between now and June off. Will only answer sporadically.

Fug1
Posts: 24
Joined: Sun Mar 09, 2014 12:00 pm

Re: IRA withdrawal

Post by Fug1 » Wed Jun 19, 2019 2:17 pm

If you're a non-resident, isn't an IRA withdrawal taxed at 15% in the USA?

pl0910001
Posts: 2
Joined: Fri Jun 21, 2019 6:33 pm

Re: IRA withdrawal,

Post by pl0910001 » Fri Jun 21, 2019 8:28 pm

Hello Nelsona, Just a question regarding

pl0910001
Posts: 2
Joined: Fri Jun 21, 2019 6:33 pm

Re: IRA withdrawal, question for Nelsona

Post by pl0910001 » Fri Jun 21, 2019 8:33 pm

Let's try this again. Nelsona, you state to fill out a non resident tax return for US taxes in order to get some of the witholding refunded. My question is, on this return , are you required to put canada sourced income? I am a canadian citizen living in Canada with an IRA and RRSP. What is the best withdrawal strategy in order to ensure that i get full credit for foreign taxes paid? Is it better to withdraw from only one or both each year? Am I better off draining the RRSP first as the minimum withdrawals in the IRA appear to be lower than those in the RRSP. Some help in a withdrawal strategy would be appreciated. Many Thanks.

nelsona
Posts: 15929
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: IRA withdrawal

Post by nelsona » Sat Jun 22, 2019 7:09 am

1040NR by definition only includes US source income. So your RRSP withdrawal means nothing to US. The best way to get full credit on your Cdn return for US taxes paid on your IRA is to reduce the US tax by reporting the income on a 1040NR rather than simply accepting the withholding done by the IRA manager.
Nelsona Non grata. Non pro. Search previous posts. Taking period between now and June off. Will only answer sporadically.

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