Returning to Canada early because of heart disease.

QUESTION:
Iwas born Dec 22/39 in Canada. I worked in Canada until Feb of 1997, moved
to the US and presently work with a TN1 visa.
I developed heart disease and have had two attacks since '01
I would like to return to Canada and retire there near my family before it's
too late.
I understand I have to work in the US for 40 quarters to get their Social
Security, I only have 27.
I assume I cannot collect from both, but what is the result of applying the
US/Canada treaty to my case?? Do I apply it to the Canadian or US fund and
which one is more advantageous.
=================================================
david ingram replies:
You will want to apply Canadian Earnings to the US Social Security to make
up your time if they will allow it.  With 27 quarters, they likely will and
it will be to your advantage to get eh higher US money for two reasons.
One it is a higher pension on a pro rata basis.  Two - when received in
Canada, only 85% is taxable.
You will then receive a smaller CPP which will be more than made up by what
you receive from the US Social Security.
Your biggest problem is medical in the US. If you cannot see yourself
continuing to work in the US, there is no sense but if you can get another 5
quarters in (up to 32) you can then buy your US social security medical and
if you keep on working and putting in more quarters, you will get to the
point where the full medical is free and you will have your 40 quarters.
Remember, it is only 3 1/3 more years and you only need to earn $4,000 a
year to qualify for four quarters a year.
Perhaps, you could continue on a part-time basis for instance. I do notice
that none of your company's three locations appear to be near the border but
if you are filling a needed function, perhaps you could telecommute and live
in Blaine, Washington, Pembina, North Dakota, Niagara Falls, or Calais,
Maine (all US border towns), fill up your Social Security and be close
enough to your Canadian Family to get the best of both.
david ingram - [email protected] <mailto:[email protected]>
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