IRA & IRA Roth Moving to Canada - Expert Income Tax help on cross Border tax and immigration and divorce and RRSP and IRA an
On 15/10/2010 4:30 PM, xxxxxxxxxxxxx wrote
Below is the result of your feedback form. It was submitted by xxxxxx on Friday, October 15, 2010 at 16:30:06 --------------------------------------------------------------------------- My_question_is: Both question: I am an U.S. citizen and will be landing in Canada early in the new year and have been researching how I should handle my regular IRA & IRA Roth accounts (both relatively small; 25% in regular IRA & 75% in IRA Roth). From what I gather, I am advised to leave the IRAs in the U.S. What I am unsure, however, is whether I would be subject to double taxation when I begin withdrawals from the regular IRA account? Should I consolidate both in the IRA Roth account and pay taxes now?
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david ingram replies:
Do not do anything. In particular, do not make any contributions after coming to Canada.
Internal earnings of the Roth and the Traditional IRA are both exempt from Canadian tax under the US Canada Income Treaty.
An exception would be if the IRA or any other IRA is mandatory as part of your job. If that is the case, any payments are deductible in Canada provided they qualify as a deduction in the USA.
If and when you do cash them in the ROTH is tax free and the TRAD is taxable in b9th the US and Canada. - Canada will give you credit for any tax you pay the US.
If you happen to return to the US without cashing them in, you will just carry on.
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