Author Topic: Canadian working in USA, 401k/IRA question  (Read 1098 times)

klystomane

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Canadian working in USA, 401k/IRA question
« on: September 12, 2014, 02:19:21 PM »
Pretty simple one here.

If I'm a Canadian working in the US, but I plan on going back to Canada in the future, should I still be maxing out my 401k/IRA each year?

I have not been able to find a clear answer on how big of a hit transferring an IRA to RRSP really means. It almost sounds like the best case scenario is where the US takes 15% withholding tax + 10% early withdrawal penalty, and then when I withdraw from my RRSP after retirement age, I will be taxed again per Canadian tax regulations.

Is there another (cheaper) method of transferring the money back (besides just leaving it in the US until I retire)?

Thanks.