IRA withdrawal Canadian citizen and resident

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patti
Posts: 66
Joined: Sun Apr 24, 2011 7:28 pm

Post by patti »

"And *some* of the income form IRA retirement accounts related to work done in US as well."

Presumably the funds in Rollover IRAs (transferred into IRA from 401k plans) could 100% qualify as effectively connected income (assuming you wanted to bother filing).

On a related topic, another situation where I think you would have no choice but to file a 1040nr is in the case of Roth IRA distributions. I think most custodians will withhold either 15% or 30% if the funds are sent to a foreign address (or at least that is my understanding). The only way of getting this money back would be to file a 1040nr listing the distributions as NEC income at 0% rate. Is this also your understanding?
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Well, regardless of the withholding, you would not report it as NEC, you would report it as non-taxable IRA distribution on page 1. It's not a treaty rate.

As explained above some Traditional IRA income is considered NEC, presumably the gains above contributions.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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