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On episode #8 of Crossing the 49th Podcast we discuss US ROTH IRAs and how they relate to Canadian tax planning and required compliance.

Proper planning for your ROTH IRA accounts is essential before you move to Canada. Some if not all planning opportunities will cease to exist once you become a Canadian tax resident. As such a review of investment accounts is important before you actually move to Canada.

Items discussed on this podcast include:

• What is a ROTH IRA
  • Tax deferred plan with after tax money
  • Contribution limits on high income individuals and couples
  • Annual limit is $6,000 unless you’re over 50 then it’s $7,000
• What to consider before you move to Canada
  • Possible conversion of traditional IRA to ROTH IRA
• Elections to file once in Canada
  • How to file a late IRA election
• Reporting of ROTH IRA on form T1135
• Receiving a ROTH IRA as part of an inheritance
  • Under new rules (other than a transfer to a spouse) the account needs to be distributed within 10 years
• Other tax and financial planning considerations
  • Unless you need the funds try to defer the ROTH for as long as possible

You can also stay updated on US Expat Tax and financial planning issues by following us at:

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Sign up for our Expat Tax and financial planning newsletter here
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Disclaimer: The information contained in this Podcast and YouTube video is for information purposes only and should not be construed as tax or financial planning advice. Tax and financial planning rules change from year to year and the information contained within may be outdated. Ensure to engage an experienced and competent tax and financial planner to help you with your tax and financial planning needs.

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