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Canadian Returning from US with 401K QuestionDear Mr. Ingram,
Thank you for taking the time to post the various types of
information on your website.
It is very informative and helpful.
I have been working in the US for 5 1/2 years on a TN work permit
and will
be returning to Canada in 2004. I have a 401K plan and want to
know if I can
roll it over to a Canadian Registered Pension Plan? I did not
have a prior pension
plan in Canada.
Thank you for your time in advance.
Sincerely,
R XXXXXXXX
=======================================
david ingram replies:
Canada's law will allow you to roll it over but the US company
will not allow it to be rolled over. My suggestion to you is
that you leave it in the USA which is one of the strongest
currencies in the world.
When you do take it out in the future, you will pay 15%
withholding tax to the US.
You will then report the gross amount (converted to Canadian
dollars) on line 115 of your Canadian return and claim credit
for the tax paid to the US. Unless there is something really
strange about your income levels, you will end up getting credit
for every cent paid to the US by means of the Canadian Federal
Foreign Tax Credit.
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321
New email to [email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed
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108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 913-9133 - (604) 913-9123 www.centa.com
Cell is (604) 657-8451 (10 AM to 10 PM seven days a week)
US/Canada Real Estate Taxation Specialists
US / CANADA / MEXICO
Working Visa and Income Tax Specialists
This from "ask an income tax and immigration expert" from
www.centa.com or www.jurock.com or www.featureweb.com. David
Ingram deals on a daily basis with expatriate tax returns with:
multi jurisdictional cross and trans border expatriate problems
for the United States, Canada, Mexico, Great Britain, the United
Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan,
China, New Zealand, France, Germany, Spain, Italy, Russia,
Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland,
Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India,
Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba,
Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands,
US, UK, GB, and any of the 43 states with state tax returns, etc.
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