canadian tax on a us roth/ira
Moderator: Mark T Serbinski CA CPA
canadian tax on a us roth/ira
I am a us citizen landed in canada. i have an ira i want to convert into a roth. how does canada view this taxwise? tim
Unfortunately, it is toolate for you to convert now that you are in canada.
You should have converted before leaving US, as it would have resulted (after paying the US conversion tax, of course) in the Roth being tax-free in US and canada forever.
But if you convert now, you will pay conversion tax in US, more tax in canada, and Roth wil no longer be tax-free in canada. That would be crazy.
You will now have to wait until you move back to US in order to convert.
You should have converted before leaving US, as it would have resulted (after paying the US conversion tax, of course) in the Roth being tax-free in US and canada forever.
But if you convert now, you will pay conversion tax in US, more tax in canada, and Roth wil no longer be tax-free in canada. That would be crazy.
You will now have to wait until you move back to US in order to convert.
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