I have little funds in US IRA account. What is the process to bring it over? What are the options? Is it possible to keep it there till retirement? Any additional input?
Quote:
Originally posted by bhootnath
I have little funds in US IRA account. What is the process to bring it over? What are the options? Is it possible to keep it there till retirement? Any additional input?
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You currently will have to report any gains made in this or the appreciation to CRA, here in Canada.
Not knowing your age, if close to 59.5 years, then wait. OTHERWISE...
There are a number of other important details that govern different situations. For Roth IRAs with only contributed funds the basis can be withdrawn before age 59½ without penalty (or tax) on a first in first out basis, and a penalty would apply only on any growth (the taxable amount) that was taken out before 59½ where an exception didn't apply. Amounts converted from a traditional to a Roth IRA must stay in the account for a minimum of 5 years to avoid having a penalty on withdrawal of basis unless one of the above exceptions applies.
If the contribution to the IRA was nondeductible or the IRA owner chose not to claim a deduction for the contribution, distributions of those nondeductible amounts are tax and penalty free.
INVEST IT INTO TFSA or in into FD's where you can easily get 10% return and bear the exchange rate fluctuations for a short while and use it as and when needed. TFSA's are currently yielding very low returns.
FH
RATE KHOJ : http://www.ratekhoj.com/fixed-deposits/index.php/
http://www.business-standard.com/article/specials/reliance-capital-sets-fd-rates-allowed-to-raise-rs-2000-cr-196090501060_1.html
fh
Thank you FH.
This is traditional IRA and not Roth. since last 5 years the amount almost doubled (not a lot of money but it did. I guess it may be because I never looked at it). So getting that money out without having to pay the penalty is what I am looking for.
You can get your share of the contributions out without any penalties. That will give you a little relief. If you have to pay a penalty on the balance, see how much it is and then bite the bullet.
If you can get into Reliance 5 yr FD at what ever rate that they will be offering, will certianly give you the best there is in that neck of the woods.
You will have to find out if there are any witholding taxes on this FD for NRI's.
If and when the Indian Rupee improves in its exchange rate from 61 down to even 55 or better, the appreciation will give you an additional gain. You will pay taxes on the gains here in Canada at your going rates. It is O.K.
That is PAR for the course, but still well worth it. Unless you can shelter it through any close relatives there who can enjoy the derived benefits.
FH.
Location: Western Hemisphere
Posted on: 08-08-13 12:37:00
Quote:
Originally posted by bhootnath
Thank you FH.
This is traditional IRA and not Roth. since last 5 years the amount almost doubled (not a lot of money but it did. I guess it may be because I never looked at it). So getting that money out without having to pay the penalty is what I am looking for.
To the best of my knowledge, you can't withdraw without the 10% penalty tax if you are under 59.5 years of age. Exceptions are available; however, they are very restrictive.
You can weigh in two things.
1. If you leave the money, the money will grow only due to market appreciation and/or any cap gains/dividends. Therefore, the potential for exponential growth is limited.
2. If you remove, you pay the 10% plus any other tax, but you have a chance to grow the money, possibly at a higher return, by moving to your RSP or any other vehicle.
In either case, the return you'd get is only a projection, not a guarantee.
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Dimple2001
I have significant funds in IRA. I just left it as it is in the US.
My ira is through a discount broker so i use it to trade on the stock market..
Quote:
Originally posted by dudewheresmycar
I have significant funds in IRA. I just left it as it is in the US.
My ira is through a discount broker so i use it to trade on the stock market..
yeah that is what I have been doing..through tdameritrade. Since that money is away and for long term I am invvesting it in risky stocks which in fact, knock on wood, are giving good returns...so far
Now if by a chance it grows significantly, my worry is that it will become an issue to move the funds around without having to pay hefty taxes/penalties.
