Canadian with ROTH IRA - real estate mutual funds

I have recently bought a mutual fund and put it under a
Roth IRA.  I am a Canadian living in the US for a few
years, i  am not sure yet if I plan to move back to
Canada.  What happens if I do move back to Canada-will
i be taxed on the money in the Roth?  Any advice would
be greatly appreciated.  Thank you
david ingram replies:
The internal earnings in the ROTH are tax free until
you withdraw the money in the US but are taxable in
Canada under Current rules.  You can find Paul Marin's
entire address on the subject at:
The relative passage by Paul Martin when he was finance
minister is reproduced here, the bad part in red:
Ottawa, December 18, 1998
1998-129 - Paul Martin, Finance Minister of Canada
Qualified RRSP Investments and IRAs
Finance Minister Paul Martin today announced that he
will propose changes to the Income Tax Act and the
Income Tax Regulations to address two issues that have
been recently raised with the Department of Finance, in
the context of retirement savings decisions currently
being made by individuals.
The changes to the Code have established a new type of
IRA, known as a Roth IRA. Under the Code, contributions
to a Roth IRA are not deductible, but investment income
accrues tax-free and distributions are generally not
taxable. Under certain circumstances, an individual may
convert an ordinary IRA into a Roth IRA, but is
required to include in computing income for the year of
conversion the value of the ordinary IRA at the time of
conversion. If the conversion is made in 1998, the
income inclusion may be spread out over a four-year
The proposed amendment to the Act would affect Canadian
residents who convert ordinary IRAs into Roth IRAs. It
would require that the individual include in income for
Canadian tax purposes any amount that must be included
in income for U.S. tax purposes. This would ensure that
the conversion amount is taxed in Canada, even where
the IRA is converted simply by amending its terms. It
would also ensure that the amount and timing of the
inclusion in Canada matches the amount and timing in
the U.S., thus allowing individuals to maximize the use
of U.S. taxes paid on conversion as foreign tax credits
in computing Canadian income tax payable.
Mr. Martin noted that the deferral opportunities in the
U.S. for Roth IRAs are far more generous than the
deferral opportunities in the U.S. for ordinary IRAs
and the deferral opportunities in Canada for
tax-assisted retirement savings. In particular,
contributions can be made to a Roth IRA at any age, and
there is no requirement for payments under a Roth IRA
to begin by a certain age. Accordingly, there are no
plans to provide tax assistance by way of an exemption
from or deferral of taxation in Canada on earnings
within a Roth IRA.
This is a good Sunday morning radio program question
Answers to this and other similar  questions can be
obtained free on Air every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, Fred
Snyder of Dundee Wealth Management and I, David Ingram
will be hosting an INFOMERCIAL but LIVE talk show
Those outside of the Lower Mainland will be able to
listen on the internet at
Local calls are taken at (604) 280-0600 and Long
Distance calls are taken at 1( 866) 778-0600
I do not know how far the LD line reaches.
This from "ask an income tax and immigration expert"
from or or David Ingram deals on a daily basis
with expatriate tax returns with:
multi jurisdictional cross and trans border expatriate
problems  for the United States, Canada, Mexico, Great
Britain, the United Kingdom, Kuwait, Dubai, Saudi
Arabia, Thailand, Indonesia, 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, and any of the 43
states with state tax returns, etc. Rockwall, Dallas,
San Antonio and Houston Texas
Denmark, Finland, Sweden Norway Bulgaria Croatia Income
Tax and Immigration Tips, Income Tax and
ImmigrationWizard Income Tax and Immigration Guru
Income Tax and Immigration Consultant Income Tax  and
Immigration Specialist Section 216(4) 216(1) NR6 NR-6
NR 6 Non-Resident Real Estate tax specialist expert
preparer consultant expatriate anti money laundering
money seasoning FINTRAC E677 E667 4789 4790 TDF-90
Reporting $10,000 cross border transactions
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.
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 - consultant - expert - advisor -advisors
consultants - gurus - Paris Prague Moscow Berlin
Lima Rio de Janeiro, Santaigo
David Ingram's US/Canada Services
US / Canada / Mexico tax, Immigration and working Visa
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321 Fax (604) 980-0325
Email to taxman at
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 and the author and any and all
non-contractual duties are expressly denied. All
readers should obtain formal advice from a competent
and appropriately qualified legal practitioner or tax
specialist in connection with personal or business
affairs such as at If you forward this
message, this disclaimer must be included."
Be ALERT,  the world needs more "lerts"
Outgoing mail is certified Virus Free.
Checked by AVG anti-virus system
Version: 6.0.788 / Virus Database: 533 - Release Date:
-------------- next part --------------
An HTML attachment was scrubbed...


Trackback URL for this entry:

No trackback comments for this entry.