How you manage 401K in Canada

[tmm99]

How are you managing your 401K/IRA's in Canada? This is a question for US citizens living in Canada... How does the taxation work when you take the money out? Also I read that VG doesn't allow foreign addresses to be used, but what about other institutions?

Thanks in advance..

[Ed_The_Gypsy]

There could be a problem. I believe that CA does not recognize Roths as tax-protected. There may be a similar glitch with 401k's.

Call Rev Can and ask.

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[Free_at_49]

I believe there are quite a few Vanguard investors living/retired abroad. Not a problem, I may be one myself soon.

When you take distributions from IRA, it's taxable in both countries if you're still a Canadian resident. I'm not a tax geek, but I think that's basic stuff.

[tmm99]

Quote:

Originally Posted by Ed_The_Gypsy There could be a problem. I believe that CA does not recognize Roths as tax-protected. There may be a similar glitch with 401k's. Call Rev Can and ask. Sent from my GT-I9100 using Tapatalk 2

Thank you for your post. Yes, I read about Roth-IRA that it is taxable in Canada. (That is a huge negative, but I don't know how much of it they will tax or what can be done to mitigate that....)

As for distribution from 401K's and IRA's, it looks like Canada and US has a treaty that prevents you from paying double taxes, but I am wondering how complex it can get....

[tmm99]

Quote:

Originally Posted by Free_at_49 I believe there are quite a few Vanguard investors living/retired abroad. Not a problem, I may be one myself soon. When you take distributions from IRA, it's taxable in both countries if you're still a Canadian resident. I'm not a tax geek, but I think that's basic stuff.

I read in another thread that Vanguard is OK with UK addresses, but not Canadian addresses. I don't know about other brokerage firms...

I wonder there are US citizens living in Canada here who can shed some light on how you manage to change allocations in 401K's, IRA's, etc from Canada...(because I read that some people do leave their 401K's etc in US instead of transferring them into RRSP (I guess that's Canada's 401K?)

[Spudd]

Try this forum - I know there are some dual citizens posting there.
Financial Wisdom Forum • Index page

[tmm99]

Quote:

Originally Posted by Spudd Try this forum - I know there are some dual citizens posting there. Financial Wisdom Forum • Index page

Thank you, Spudd. I will definitely check out the forum.