Matt C. Altro was recently interviewed by Melissa Shin from Advisor’s Edge to analyze the consequences and opportunities when it comes to crossing the Canada/US border with retirement accounts. The analysis was published in the September edition of the Advisor’s Edge magazine and also appeared online on Advisor.ca.
In the article, Matt reviews the various options individuals face with regards to their 401(k)s, key questions one should be asking when holding 401(k)s if they have a cross border lifestyle, and he also shares various tips and tricks for retirement accounts. Click here to view the article online or scroll down to read an excerpt from the piece.
How to bring 401(k)s and IRAs to Canada
September 9 2016
Crossing borders for work often means cross-border tax issues, especially when it comes to retirement accounts.
Moving 401(k)s and IRAs (see “Common U.S. retirement accounts at a glance”) to Canada must be done with plenty of forethought; otherwise, owners could face big tax bills on both sides of the border. In a case that got accountants buzzing, CBC’s Go Public reported that an Ontario couple lost almost a quarter of their U.S. retirement savings to taxes when they followed improper advice about making the transfer.
And even if clients don’t want to move their money, they may be forced to. “Plans have the ability to kick a participant out either due to account size or non-residency in the U.S.,” says Debbie Wong, a CPA and vice-president with Raymond James in Vancouver. That means Canadian residents could be out of luck.