Author Topic: t1135 and IRA, roths  (Read 2111 times)

coco1106

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t1135 and IRA, roths
« on: February 12, 2019, 12:21:41 PM »

  Hi
 Can anyone tell me in US IRAs, roths  which are held in a US brokerage firm are to reported for form t1135 ...reporting foreign funds .

We will have a US bank account, > 100k usd
IRA, roths, HSA all located in USA
no other assets.

I know we will have to report our US bank account since it will have more than 100k USD,
The only other US assets we will have are IRA,roth IRA and HSA...

I believe we have to sign a tax deferral  notice for our roths when we file our taxs, form what I have researched the roth does not then have to be reported on t1135   after you have signed the one time deferral notice??????
 not 100% certain on this, that being said  I would rather over report than not !

Once we relocate no more contributions will be made to the roth, we intend on leaving it in USA, until we start withdrwaing funds when we are 60

How does CRA treat us IRAs, are they reported on t1135, I do not have a problem reporting any money we have , I just want to make sure every thing is reported correctly............I would rather over report , than try to  interpert  anything for CRA..!!!!

Does CRA classify IRA as a foreign asset , or do they treat it like a RRSP???

I am just tring to educate  myself before the move, I am sure the expensive expensive tax specialist will know all this, but I would like to have a bit of background myself.
Thank you for any put . have a great day .

btw...........any one have any experience with HSA once you move to Canada ?? we have 40k in the account, can we leave it in USA and use for medical expense in Canada for prescriptions, dental,vision ???
IF not can we leave it in USA and withdraw when we are 65 ?






Goldielocks

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Re: t1135 and IRA, roths
« Reply #1 on: May 05, 2019, 09:04:11 PM »
I reported all my accounts on the forms (the canadian ones, the US ones).  Anything not domiciled in the same country as the form was reported.

IRA is a foreign asset that is NOT an RRSP in the eyes of CRA, yet it is covered by the US / Canada Tax treaty, so falls under unique treatment / waiving of some taxes and fees.

I have no idea about the HSA.   I imagine that you need to either empty it, or freeze it until you are official retirement age.   It would be a foreign account and subject to the USA's structured requirements for withdrawals, including penalties if all is taken out.   Again, look up the HSA rules on the US side.  Sometimes you are allowed to cash out accounts when you cease to become a permanent resident (at least that is how locked in CDN retirement accounts work).