Worked in US for a few years and now returned to Canada, what to do with the 401k and Social security?

Preparing for life after work. RRSPs, RRIFs, TFSAs, annuities and meeting future financial and psychological needs.
Post Reply
Wing
Contributor
Contributor
Posts: 277
Joined: 12 Nov 2016 21:02

Worked in US for a few years and now returned to Canada, what to do with the 401k and Social security?

Post by Wing »

My US employer and I each paid 15k into social security taxes, 3.5k into Medicare taxes.

Also, I have 33k in my 401k plan.

Qs:
1. Does social security benefits mean anything to me when I'm a Canadian citizen, assuming I won't go to work/live in the US anymore?

2. Should I keep my 401k money in the US and only withdraw reaching the age without penalty? Or, is it preferred for me to bring it to Canada and how?
Wing
Contributor
Contributor
Posts: 277
Joined: 12 Nov 2016 21:02

Re: Worked in US for a few years and now returned to Canada, what to do with the 401k and Social security?

Post by Wing »

Thanks. I thought I could roll the 401k to RRSP somehow.

If not, there's not much can be done until I turn 59 1/2 years old.
gobsmack
Contributor
Contributor
Posts: 447
Joined: 04 Sep 2015 13:16

Re: Worked in US for a few years and now returned to Canada, what to do with the 401k and Social security?

Post by gobsmack »

Wing wrote: 14 Apr 2017 20:43 I thought I could roll the 401k to RRSP somehow.
It is possible but it is not simple. You will find more info here. I have seen this topic come up on a few other threads so you may also try and search for them.
Wing
Contributor
Contributor
Posts: 277
Joined: 12 Nov 2016 21:02

Re: Worked in US for a few years and now returned to Canada, what to do with the 401k and Social security?

Post by Wing »

gobsmack wrote: 15 Apr 2017 06:35
Wing wrote: 14 Apr 2017 20:43 I thought I could roll the 401k to RRSP somehow.
It is possible but it is not simple. You will find more info here. I have seen this topic come up on a few other threads so you may also try and search for them.
Very informative. Thank you!

I think I'll leave it as is as the amount is not big, but then I need to find out how to report to CRA my tax deferral election when there's not a form of it.
Wing
Contributor
Contributor
Posts: 277
Joined: 12 Nov 2016 21:02

Re: Worked in US for a few years and now returned to Canada, what to do with the 401k and Social security?

Post by Wing »

Wing wrote: 15 Apr 2017 10:50
gobsmack wrote: 15 Apr 2017 06:35
Wing wrote: 14 Apr 2017 20:43 I thought I could roll the 401k to RRSP somehow.
It is possible but it is not simple. You will find more info here. I have seen this topic come up on a few other threads so you may also try and search for them.
Very informative. Thank you!

I think I'll leave it as is as the amount is not big, but then I need to find out how to report to CRA my tax deferral election when there's not a form of it.
Under retirement accounts #6 here http://www.finiki.org/wiki/Cross-border ... ate_issues says 401k tax deferral election is not reportable to CRA, wondering which is correct.
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33398
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: Worked in US for a few years and now returned to Canada, what to do with the 401k and Social security?

Post by AltaRed »

Article 13 of the 5th protocol to the Can-US Convention speaks to only Roth IRAs in Paragraph 7 of Article 13. Serbinski https://serbinski.com/treaty-changes-fi ... highlights does not mention either Roth IRAs or 401(k)s.

This subject has no doubt come up on the Serbinski tax forum. Suggest you do a Search through relevant threads there to see what folks are saying. The authors of our Finiki would normally have done a lot of research to 'get it right' before landing on a final form but it is not infallible either.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
User avatar
Norbert Schlenker
Veteran Contributor
Veteran Contributor
Posts: 7960
Joined: 16 Feb 2005 09:56
Location: An Argument Surrounded By Water
Contact:

Re: Worked in US for a few years and now returned to Canada, what to do with the 401k and Social security?

Post by Norbert Schlenker »

The current rule is that you do not have to report holding a 401(k) or traditional IRA to the Canada Revenue Agency.

Per the finiki entry, you'll get something out of Social Security if you worked and paid FICA for at least six (but less than 40) quarters in the US. I'm about five years away from being in a position to collect what I expect will be a pittance (33 quarters credited for me) via totalization.
Nothing can protect people who want to buy the Brooklyn Bridge.
User avatar
adrian2
Veteran Contributor
Veteran Contributor
Posts: 13333
Joined: 19 Feb 2005 08:42
Location: Greater Toronto Area

Re: Worked in US for a few years and now returned to Canada, what to do with the 401k and Social security?

Post by adrian2 »

Norbert Schlenker wrote: 15 Apr 2017 14:15 I'm about five years away from being in a position to collect what I expect will be a pittance (33 quarters credited for me) via totalization.
Pittance is in the eye of the beholder! :P
Imagefiniki, the Canadian financial wiki
“It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong.” [Richard P. Feynman, Nobel prize winner]
Wing
Contributor
Contributor
Posts: 277
Joined: 12 Nov 2016 21:02

Re: Worked in US for a few years and now returned to Canada, what to do with the 401k and Social security?

Post by Wing »

Norbert Schlenker wrote: 15 Apr 2017 14:15 The current rule is that you do not have to report holding a 401(k) or traditional IRA to the Canada Revenue Agency.

Per the finiki entry, you'll get something out of Social Security if you worked and paid FICA for at least six (but less than 40) quarters in the US. I'm about five years away from being in a position to collect what I expect will be a pittance (33 quarters credited for me) via totalization.
I have only 20 quarters. Have yet to update the address with social security. It doesn't let me sign up an online account as I don't have a US mailing address.
User avatar
SoninlawofGus
Veteran Contributor
Veteran Contributor
Posts: 1284
Joined: 21 Aug 2007 12:10
Location: Ottawa

Re: Worked in US for a few years and now returned to Canada, what to do with the 401k and Social security?

Post by SoninlawofGus »

adrian2 wrote: 15 Apr 2017 14:42
Norbert Schlenker wrote: 15 Apr 2017 14:15 I'm about five years away from being in a position to collect what I expect will be a pittance (33 quarters credited for me) via totalization.
Pittance is in the eye of the beholder! :P
Yeah, go ahead an rub it in to people like me with only 30 quarters. :lol:

At least we'll avoid the WEP, or so I'm told.
Post Reply