401K to IRA to RRSP


I am a Canadian and have a PhD in Biomechanics. I have recently been offered a faculty position in the US. The University has a great 401K program and I am interested to know what I can do with this if I decide to return to Canada in the next 5-10 years.


david ingram replies:

You can leave the 401(K) behind and start taking a pension at 65.


(not recommended) you can even roll it over to an IRA and then cash in the IRA, pay the US tax, roll the gross IRA into an RRSP and claim a foreign tax credit after reporting the IRA as taxable income on your Canadian return and ending up with an approximate tax wash with the 401(K) corpus now ensconced in a Canadian RRSP.