2007-02-22 09:39:14 · 2 answers · asked by svergarasr 1 in Business & Finance ➔ Taxes ➔ United States
To the best of my knowledge, you will pay taxes in US when you take the money from the IRA, b/c Canadian retirement plans are not "qualified" plans under US tax law. However, I am not an international tax whiz, so I could be missing a loophole. Please consult a CPA that has experience dealing w/ this. Don't take the advice of a mutual fund broker on this. It could be expensive an expensive mistake.
2007-02-22 09:50:52 · answer #1 · answered by Tom's Mom 4 · 0⤊ 0⤋
You betcha! That is treated as an early distribution and is fully taxable, plus the 10% penalty tax if you're under age 59 1/2 or not totally and permanently disabled.
I can't speak for the Canadian RSP, but my bet is that they do not do rollovers from foreign plans; you'd only be allowed to make the maximium annual contribution to it, nothing more.
IMHO, don't even try!
2007-02-22 20:36:05 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋