RPP paid in lump sum to RRSP

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GlobalCitizen
Posts: 47
Joined: Sat Jan 03, 2015 8:58 pm

RPP paid in lump sum to RRSP

Post by GlobalCitizen »

When an RPP is distributed as a lump sum, it can be rolled into an RRSP. This is a non-taxable event in Canada. However, what is the proper US treatment of this?

Is this a pension distribution for IRS purposes, or does the income continue to be deferred until it is withdrawn from the RRSP?
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nelsona
Posts: 18697
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: RPP paid in lump sum to RRSP

Post by nelsona »

This is also non-taxable in US, because it is non-Taxable in Canada. It will be taxable when withdrawn from the RRSP down the road.
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
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GlobalCitizen
Posts: 47
Joined: Sat Jan 03, 2015 8:58 pm

Re: RPP paid in lump sum to RRSP

Post by GlobalCitizen »

Thank you. That is good to know!
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