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shadowfox7569

Moving retirement to the US

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Filed: K-1 Visa Country: Canada
Timeline

Just like to say thanks to all the VJ members for the help navigating the K1 process. We had no idea where to even start before we found this website. We just got our Welcome to the US letter in the mail without an interview on our AOS (hope the green card comes soon). I have one question and I am not sure the best way to handle it. My wife is Canadian and living here now. She has around $25,000 CAD in a retirement and we would like to bring down here to open a retirement account. I know we will have to convert it to USD before bringing it here. Is there an easy way to do that without Uncle Sam getting his fingers into it. I do not want to do anything dishonest just hate paying more taxes on money she has already been taxed on since it was from a family member passing. Was hoping to just open a Roth or some other IRA.

Edited by shadowfox7569
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Filed: Citizen (apr) Country: Canada
Timeline

Is it a locked in RRSP or LRIF or just a regular (non-locked in) account? If it is considered Locked in (as mine is) she can still withdraw it by providing the documentation required indicating she is no longer a Canadian resident - ask the company specific for what is needed. The Cdn government recently (last 5 yrs or so) now allows withdrawals from Locked-in accounts.

My understanding is that there is no way to withdraw the retirement funds tax free and then deposit into an American 401K/IRA as pretax money...can't be done. Someone needs to tax it and this time it's Canada since they never taxed her when it went in.

She will need to withdraw in Canada, take the approx. 25% tax hit (unless she's in retirement and the rules may be different) and then open an After tax retirement fund in the US (a ROTH or whatever). She or the investment company would report a deposit of anything over $10K as the law instructs...its not clear to me whether there would be any hit from the IRS as well on the initial amount.

I'm guessing your wife is somewhat younger and not near retirement since her fund is $25K...mine is similar and I am seriously considering withdrawing it now and just taking the hit to get the messiness out of the way.

Edited by Udella&Wiz

Wiz(USC) and Udella(Cdn & USC!)

Naturalization

02/22/11 - Filed

02/28/11 - NOA

03/28/11 - FP

06/17/11 - status change - scheduled for interview

06/20?/11 - received physical interview letter

07/13/11 - Interview in Fairfax,VA - easiest 10 minutes of my life

07/19/11 - Oath ceremony in Fairfax, VA

******************

Removal of Conditions

12/1/09 - received at VSC

12/2/09 - NOA's for self and daughter

01/12/10 - Biometrics completed

03/15/10 - 10 Green Card Received - self and daughter

******************

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Filed: Citizen (apr) Country: Canada
Timeline

I personally left my retirement investment account in Canada. I didn't want to take the horrible exchange rate plus the tax hit right now.

Caro

...........
2010-07-07 visit to my 2nd home in Phoenix, US
2010-07-24 got married!
2010-09-17 filed AOS
2010-09-23 NOA
2010-10-19 BIO
2010-12-14 Interview Phoenix, AZ
2010-12-15 Approval notice received
2010-12-24 Green Cards received for me & son
............
2012-09-15 I-751 sent
2012-09-25 I-797, NOA received
2013-01-16 BIO

2013-06-13 Approval notice received

2013-06-27 10yr Green Cards received for me & son

............

2013-09-27 N-400 Naturalization application sent

2013-10-03 Priority Date

2013-10-07 N-400, NOA received

2013-10-11 I-797C, NOA received

2013-10-25 BIO (notice bio done last 10 months ago)

2013-11-14 In line

2013-12-13 online status changed to "Scheduled for Interview"

2013-12-18 letter for interview

2014-01-21 Interview date that I had to request change due to travel

2014-02-18 Interview in Phoenix

2014-02-22 Naturalization Oath Ceremony - I am officially a dual citizen Canadian/American

...........

2015-11-04 N-400 Naturalization application sent for SON aged 20

2015-11-09 N-400, NOA rec'd for son

2015-11-20 I-797C, NOA rec'd for son

2015-12-02 BIO for son

2015-12-04 In line

2016-01-29 online status changed to "Scheduled for Interview" for son

2016-02-03 letter for interview for son

2016-03-07 Interview in Phoenix for son

2016-03-25 Naturalization Oath Ceremony for my son - he is officially a dual citizen Canadian/American

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Filed: K-1 Visa Country: Canada
Timeline

Thanks for the tips. I think her money is currently in a CD or bond account at her bank since it came from a family member. I do agree the exchange from CAD to USD is going to be a horrible. That alone might not make it worth it. I guess reporting it on the tax return this year shouldnt be to bad.

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