For AINP Applicants - What happens to SS, Medicare and 401k funds?

[Tapak]

Folks,

This is applicable to AINP applicants under H1B SRS plan. All of us have had their paychecks with deductions towards Social Security, Medicare and 401k (optional)?

After we get PR and relocate to AB for good, what happens to our contributions already made through our payroll in US?

Can we transfer these in parts or all of funds to corresponding system in Canada OR we kiss good bye to all our contributions made here?

I have heard that 401K funds can be withdrawn with penalty but I am not sure if there is similar arrangement in Canadian tax system which will allow direct transfer of 401k funds without having to pay for the penalty.

Any insight into the following topics would be really helpful:

• Social Security
• Medicare
• 401k

Thanks in advance.

Taps

 

[nomad_musafir]

401k: You may wait until you retire to come collect your 401k without penalty. I have no idea if the 401k can be rolled into a company in Canada, guess not.

Social Security and Medicare: If you have not collected 40 credit (paid SS for 10 yrs) you will have to kiss it goodbye.

(This reminds me I need to stop my 401k contributions. I do not get 100% vested for employer contributions until my 6th yr of service)

 

[rascojenkins]

Most people Use their 401K as prove of funds for their immigration to canada which means the catch it or something when they are ready to immigrate to canada.

 

[cchabert]

SS and Medicare kiss good bye and if you are in H1B I don;t think you have much there anyway.

:-D

 

[alabao]

I thought you need 40 credits ...so if you have less and in future if you come with TN visa and work won't you get those credits in SS??

 

[Tapak]

I thought you need 40 credits ...so if you have less and in future if you come with TN visa and work won't you get those credits in SS??

I thought so too. Accumulating 40 credits before retirement wouldn't be difficult with few stints of project work in the USA; but is it correct.

Taps

 

[ss123]

medicare, ss: you will get money only if you stay in uSA. so if you are not a US resident, you will not be eligible.

 

[ingegarcia]

Some usefull link I found regarding S.S.

http://socialsecurity.gov/pubs/10137.html#what

medicare, ss: you will get money only if you stay in uSA. so if you are not a US resident, you will not be eligible.

 

[Tapak]

Some usefull link I found regarding S.S.

http://socialsecurity.gov/pubs/10137.html#what

medicare, ss: you will get money only if you stay in uSA. so if you are not a US resident, you will not be eligible.

Inge, Thanks a lot for digging further into SS information.

Based on what I read, I think we will get SS - assuming that we will be CND citizens in next 5 years or at least before retirement

If you are a citizen of one of the countries listed below, Social Security payments will keep coming no matter how long you stay outside the U.S., as long as you are eligible for the payments.

Austria
Belgium
Canada
Chile
Finland
France
Germany
Greece
Ireland
Israel
Italy
Japan
Korea (South)
Luxembourg
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
United Kingdom

 

[nix1]

Tapak,

When did you come back from Canada? Did you face any issues while coming back into the US?

 

[Tapak]

Tapak,

When did you come back from Canada? Did you face any issues while coming back into the US?

My training session had already started and my company's law firm couldn't provide the supporting documents on time. Glad that I didn't step out of this country, there are so many stories/rumors about H1B denials returning to the USA.

Things would have been different if I had CND PR in hand.
Keeping my fingers crossed for quick processing of CIC application.

Taps

 

[ingegarcia]

Do you mean denials at the entry point? I went to my home country at the end of 2008 and enter to US on Jan 15/09, I did not have any problems... BTW my entry point was Miami...

Maybe I was lucky...

Tapak,

When did you come back from Canada? Did you face any issues while coming back into the US?

My training session had already started and my company's law firm couldn't provide the supporting documents on time. Glad that I didn't step out of this country, there are so many stories/rumors about H1B denials returning to the USA.

Things would have been different if I had CND PR in hand.
Keeping my fingers crossed for quick processing of CIC application.

Taps

 

[Tapak]

Do you mean denials at the entry point? I went to my home country at the end of 2008 and enter to US on Jan 15/09, I did not have any problems... BTW my entry point was Miami...

Maybe I was lucky...

Yes. I heard of one case where person was denied entry at POE. It seems that his manager was contacted and things went bitter from there.

 

[Tapak]

Some information for people who want to look for child educational plan, retirement plan

An RESP:

is a special savings plan (like a savings account)
helps you, your family or friends to save early for a child's education after high school
is registered by the Government of Canada
allows savings for education after high school to grow tax-free and could also gain government money through the Canada Education Savings Grant and the Canada Learning Bond, if you qualify.

http://www.canlearn.ca/eng/saving/resp/index.shtml

Registered Retirement Savings Plan (RRSP)

The Registered Retirement Savings Plan (RRSP) program allows savings for retirement to grow tax free in a special savings plan registered by the Canada Revenue Agency.

Delivered by: Canada Revenue Agency (CRA)

http://www.cra-arc.gc.ca/rrsp/


Also I came across this site which has some helpful information for Newcomers to Canada

http://www.servicecanada.gc.ca/eng/home.shtml

I hope this helps.

Taps

 

[cchabert]

Thank you Taps good links a lot to read