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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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Hi, I am a Canadian citizen who has been in the US for 12 years,

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Hi, I am a Canadian citizen who has been in the US for 12 years, I am a green card holder but doesn't hold a US citizenship. I hold here in the US IRA's that were built over the 12 years working for different employers. If I move back to Canada and forfeit my permanent residency (green card) can I keep my IRA's here in the US without being penalized and taxed until I retire in Canada? Is there anyway to prevent to cash them and pay penalties. Thanks



Yes, you can keep your IRA accounts here in the US until such time as you retire without any tax penalties. It will not matter that you are no longer a resident of the US.


Your IRA plans were established as the time that you were a resident alien, and once those plans are established, the same rules continue to apply for the life of the plan.


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Thank youCustomer/p>



Customer: replied 6 years ago.

Thanks for the quick answer...

Three clarifications:

1) ... even i am not a US citizen, it can be sheltered until retirement?

2) ... does it make a difference where I live in Canada/Province? does it make any difference where I live in the world?

3) ... so it is only to find an institution (bank or trustee) that can hold IRA's for non-resident, right?



Yes, your money will be sheltered from any tax until such time as you make withdrawals from the account. Just because you are not a US citizen or green card holder does not mean that you are now forced to start making withdrawals from your IRA. You may start taking withdrawals at retirement age and will not be taxed until that time.


It will not matter what province you live in and does not even matter what country you live in. The same rules apply regardless of where in the world you live.


Finding an investment firm to hold your IRA once you become a non resident should not be a problem.


If this was helpful please press the Accept button.


Thank youCustomer/p>



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