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Here is a question I asked on the Tax Strategies board, but I didn't get any takers. I guess it is probably a bit beyond what most people have ever needed to worry about, but I thought I'd try on this board just in case anybody has any ideas.

I'm a Canadian citizen living in the US, permanent resident, filing only a US tax return. That will remain the case until I retire. On retirement I might stay in the US, or I might move permanently back to Canada.

If I stay in the US my retirement finances are clear; the IRS calls the shots. If I have money in a Roth IRA, then at the appropriate time I'll be able to take distributions tax free.

I have no idea what the situation would be if I moved back to Canada and was filing a Canadian tax return. I know there are complementary taxation agreements between the US and Canada, but I don't know if that means my Roth distributions would be treated as tax-free in Canada. If not, then it is highly unlikely that I'd ever want to do a rollover from an IRA to a Roth IRA (unless I yanked all the money out of the Roth before moving, but then it wouldn't be invested as long and I probably wouldn't gain anything from the conversion).

Any ideas?
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Greetings, Reidmp, and welcome. You wrote in part:

<<I have no idea what the situation would be if I moved back to Canada and was filing a Canadian tax return. I know there are complementary taxation agreements between the US and Canada, but I don't know if that means my Roth distributions would be treated as tax-free in Canada. If not, then it is highly unlikely that I'd ever want to do a rollover from an IRA to a Roth IRA (unless I yanked all the money out of the Roth before moving, but then it wouldn't be invested as long and I probably wouldn't gain anything from the conversion).

Any ideas?>>


That is an issue of international tax agreements between Canada and the United States. My suggestion is you ask a Canadian tax advisor what the impact would be.

Regards..Pixy
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