I'm am a US citizen living in the US for the past 15 years since moving from Canada following a company transfer. I had accumulated a company pension while working in Canada and now have the opportunity to transfer a Lump Sum (~$500k)of my commuted company pension to an RRSP I retained after moving to the US.
I've been asked to file form T2151 to make this transfer. I understand that this lump sum will not be taxed by the CRA until a distribution occurs.
I'm anxious to understand how this transfer will be treated by the IRS? How will this be reported in my 2015 US tax returns? Will the IRS expect taxes to be paid on this roll-over of my pension to my existing RRSP?
Many thanks for help.
Flem
Company Pension Transfer to an RRSP anf Form T2151
Moderator: Mark T Serbinski CA CPA
No. by treaty and by IRS regukations, transfers from/to RRSPs which are not taxable in Canada are not taxable in US. It is a non-event.
The only thing to remember is that the portion of the RRSP and its growth will be 100% taxable in US when you withdraw it.
The only thing to remember is that the portion of the RRSP and its growth will be 100% taxable in US when you withdraw it.
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