Subject: Re: messages
Dear David:
You have been doing a great job and your knowledge and
experience have really made you to be the Leader in
these area and we appreciate your service.
I am a Canadian Citizen currently living in the US
(Green Card Holder),seriously thinking to collapse one
of my RRSP account (the other one is a Locked-in_RSP)
and pay the 20% penalty and the capital gain (as you
described to someone else's question in one of your
mail)then use the money towards any of the following.
The choices are:(a) pay part of the mortgage principal
(personal home thatwe a living in here),
(b) put part as contribution into IRA,
(c) pay out some other debts (consumer debts -car loan
etc).
What would be the best strategy in terms of tax
savings/advantage doing any one or all of the above?
Thanks.
Nxxxxx
============================
david ingram replies:
The tax to Canada is 25% when you withdraw your RRSP as a non-resident.
Then the in come on the plan or the proportion of the income since you went
to the US must also be reported.
(see Form 8891 available at www.irs.gov) for an idea about reporting under
the new rules.
Before you pay off a house mortgage which is deductible, pay off the
non-deductible high interest credit cards. Next pay off a non-deductible
car loan with interest. If it is a zero interest car loan, you should get a
discount.
The rest is up to you.
Answers to this and other similar questions can be obtained free on Air
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