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Proof of funds - Can I use my 401k and joint account

A

ashish29

Newbie
Nov 7, 2013
6
0
Hello,

I am planning to apply for Canadian PR soon in Express Entry - Federal skilled worker. I had a couple of questions regarding the proof of funds.

1. I am currently residing in USA, and have a 401K account. Can I provide 401k account's balance as a proof of funds?
2. I have a joint account with my mother, can I use that account's balance as a proof of fund?

Thanks in advance
Ashish
 
I'm wondering about the 401k as well. I've seen contradictory answers depending on which forum I look to.
 
ashish29 said:
2. I have a joint account with my mother, can I use that account's balance as a proof of fund?
Click to expand...

I am not from the US but I had a joint bank account with my mother and that's what I used for my application. The money in the account was mine but I just need my mother for bank transactions on my behalf.

I just showed them proof of remittance (to show that I am really sending those money from overseas) and a letter from my mom saying that I own the money in the account.

I am in Canada now as PR.
 
Thanks badpusacat, that helps. Even my joint account is outside USA, it has the required funds, but is not an active one. I guess I will get a letter/affidavit from my mother stating the money belongs to me

Does any one have any advise regarding using 401k for proof of funds?
 
ashish29 said:
Thanks badpusacat, that helps. Even my joint account is outside USA, it has the required funds, but is not an active one. I guess I will get a letter/affidavit from my mother stating the money belongs to me

Does any one have any advise regarding using 401k for proof of funds?
Click to expand...

401(k) is a retirement corpus which you can withdraw post retirement. The IRCC (CIC) requirement with regard to settlement funds state that the funds should be readily transferable and unencumbered. In this regard, 401(k) does not meet the IRCC requirement and cannot be considered as POF. On the other hand, if you can withdraw a share of your contribution to 401(k) and get the proceeds transferred to your bank account, you can show that amount as POF. However, 401(k) comes with many restrictions and caveats when it comes to premature withdrawal. If I am not wrong, you will have to pay 10% withdrawal penalties and tax on the amount as well. Suggest you to look up on the guidelines for the same.
 
Thanks Stanlee.

You are right, when someone withdraws money from 401k, they must pay 10% penalty plus taxes. When you leave USA, you can withdraw the money, and that process is pretty straightforward, and you don't have to be 59 1/2 year old.

With that said, its obvious that when I, if my application is approved, move to Canada, I would be in a position to withdraw the money. Does that mean that I can show 401k balance as a proof of funds?

Thanks
Ashish
 
ashish29 said:
Thanks Stanlee.

You are right, when someone withdraws money from 401k, they must pay 10% penalty plus taxes. When you leave USA, you can withdraw the money, and that process is pretty straightforward, and you don't have to be 59 1/2 year old.

With that said, its obvious that when I, if my application is approved, move to Canada, I would be in a position to withdraw the money. Does that mean that I can show 401k balance as a proof of funds?

Thanks
Ashish
Click to expand...

I have read on some thread on the forum that some people have submitted PF statements as proof of funds. 401(k) is nothing but a PF, so in light of that I assume that you can use 401(k) statements and also submit a letter of explanation stating how quickly this fund would be available to you for withdrawal. Having said that, would also suggest you to take a second opinion on the same. Check out if someone has already submitted 401(k) and got through. All the best!
 
Join account - yes
Pension funds - no
 
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