This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
Sent: Tuesday, January 27, 2004 6:35 PM
To: [email protected]
Subject: 401K
I am a Canadian who has been living in the USA for the past three years and contributing to a 401K with a company match.
I also have a Canadian RRSP that has been sitting dormant for the past three years ( no contributions).
1. Do I have to claim any earnings growth within the Canadian RRSP on my US income tax form?
2. Do I need to submit a Canadian tax form?.
3. Finally, when the day comes to access funds; I am assuming the 401K or RRSP will be taxed as income depending on my residence.
Thank You. Great Web Site! I will be calling
BXXXXXXXXXXX
--------------------------------------------------------------------------------
david ingram replies:
1. The answer is that the internal earnings of your RRSP ARE taxable on schedule B of your US 1040. In addition, the two bottom questions about foreign accounts must also be marked "yes". Your RRSP is a Foreign account (to the USA) AND it is also a foreign trust. You can exempt the internal earnings under REV.PROC 2002-23. You can find the details by going to www.centa.com and reading the August 2003 newsletter.
There is going to be a new form to do this reporting but I have not seen it yet.
Failure to fill in the TDF-90 forms mentioned in question 1 can result in a fine of up to $500,000 PLUS up to 5 years in jail. I have seen a 105 year old lady get a $10,000 penalty for having $38,000 in the Royal Bank of Canada in Edgemont Village in North Vancouver. The penalty was removed when I told a nice lady at the IRS in L'Enfant Plaza in Washington, how old the errant taxpayer was.
2. You do NOT need to fill in a Canadian form
3. When you begin to withdraw funds in the future, both the 401 K and the RRSP will be taxable.
As an example, if you retire in the US and take the RRSP as an annuity or RRIF, Canada will get 15% withholding tax (ART XVII - US / Canada Tax Treaty)and the amount will then be added to your US return and you will claim the 15% tax paid to Canada will be deducted from your tax in the US by filing form 1116.
Hope this helps, look forward to hearing from you.
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
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321
[email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
This from ask an income tax immigration planning and bankruptcy expert consultant guru or preparer from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa, Thailand, Indonesia, Egypt, Antarctica, 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, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
income tax wizard wizzard guru advisor advisors experts specialist specialists consultants taxmen taxman tax woman planner planning preparer of Alaska, Alabama, Arkansas, Arizona,
California, Colorado, Connecticut,
Delaware, District of Columbia, Florida,
Garland, Georgia, Hawaii, Idaho, Illinois,
Indiana, Iowa, Kansas, Kentucky,
Louisiana, Maine, Maryland,
Massachusetts, Michigan, Minnesota,
Mississippi, Missouri, Montana, Nebraska,
Nevada, New Hampshire, New Jersey,
New Mexico,New York, North Carolina,
North Dakota, Ohio, Oklahoma, Oregon.
Paris, Rome, Sydney, Australia Hilton
Pennsylvania, Rhode Island, Rockwall,
South Carolina, South Dakota, Tennessee,
Texas, Utah, Vermont, Virginia,
West Virginia, Wisconsin, Wyoming,
British Columbia, Alberta, Saskatchewan,
Manitoba, Ontario, Quebec City,
New Brunswick, Prince Edward Island,
Nova Scotia, Newfoundland, Yukon and
Northwest and Nunavit Territories,
Mount Vernon, Eumenclaw, Coos Bay
and Dallas Houston Rockwall Garland
Texas Taxman and Tax Guru and wizzard
wizard - Your name has been added to our email list because of an enquiry we have received, we may not answer your question but
another similar question will be as we lump them.
You may find more answers at www.centa.com
If the number of messages is too many for you or the US / Canada Taxation and Immigration information is not of interest, simply reply with a remove request.
David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/d8d576dc/attachment.htm
---------------------- multipart/alternative attachment--
What's Related