Pension Rollover

[oreidapennsyltucky]

Hello! I will soon (hopefully) be moving to Canada with my PR. I'm currently working and have a 401(k) in the states. Does anyone have any experience with rolling a 401(k) into an RRSP? Do I need to roll it into an IRA first? Will I be taxed in Canada for bringing it in?

 

[seton]

If you want it in an RRSP, you will need to roll it into an IRA first then transfer it in. You will get the tax withheld in the US (plus any penalties like the 10% penalty if you're under 59 and a 1/2), but may have some foreign tax credits from it which can be applied to any taxes owed in Canada (ie if your marginal tax rate is high enough, you can use all the credits).