ROTHS and other U.S. tax sheltered vehicles



As an American citizen living in Vancouver (I also have Canadian citizenship) am I allowed to open and contribute to retirement tax sheltered vehicles such as a ROTH or IRA in the States?... I am debt free and annually max out my RRSP...

Thank you,
xcxxx from New York

david ingram replies:

Don't even think about it unless you have US earned (wages or self-employment) income which was earned in the US and therefore is taxable in the US first.  (Money paid to you in Canada from a US employer for work performed in CANADA does NOT count.)

Then it might be acceptable.  Acceptable depends on  "IF".  It appears that a US IRA will be deductible for Canadian Tax proposes in the new US/Canada Income Tax Treaty (signed Sept 21, 2007).  However, I have not had a chance to discuss this with anyone yet and am not prepared to make a go for it decision.

You are our typical client.

Get more information about deductions and investments by going  to Fred Snyder's seminars at 1764 West 7th on Thursday Nights at 7 PM (there is also one at noon the same day).

These are free and you have absolutely nothing to lose by attending.  Fred is one of the few financial consultants in Vancouver who has any idea of the reporting rules for US citizens living in Canada. �