Moving IRA's back to Canada Ask a cross-border

QUESTION:
Can IRA's be moved back to Can. in a tax effective manner when someone moves
back to Canada permanently?  Thanks,
=============================
david ingram replies:
I think the following Q & A will help you out.
QUESTION:
worked in CA for 4 yrs. returned to BC in Apr.'04.  Need to transfer my
retirement fund but having difficulties with bank and credit union.  US
specifies that I must roll it over to IRA accound (Individual retirement
account.  I do not want to be subject to the 20% withholding fee for IRS.
What would be the best way to get the funds to me here in CAnada.
=======================================
david ingram replies:
1.  move it to an IRA and leave it there in one of the world's strongest
economies.  Most financial advisors are trying to get "more" of their
clients' money into US funds.
2.    If you just have to have it in Canada, you have to cash it in in the
US and pay your tax to the US.  take what is left, add the amount (even if
borrowed) of the tax you paid to the US and buy your Canadian RRSP.  That
will give you a tax deduction which should be larger than the tax you paid
to the US.
When you get the refund, pay back the loan.  You will have transfrred the
money quite handily.
The amount you took out is also taxable on your Canadian return.  Pay that
tax with the tax you paid to the US as a foreign tax credit.
You will likley need help.
Fred Snyder at (604) 731-8900 who is with Dundee Wealth Management can help
you with the process if you are moving to Ontario or BC.
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