Wednesday, February 12, 2014

Can a Dual Citizen Living in Canada Keep a US IRA?

After listening to the horror stories from the Cross Border Financial Planners, I decided to check with Vanguard USA and Fidelity to see what happens if we become resident in Canada but we still have IRAs in the USA. The anecdotes from the planners have IRA accounts being closed out without notice, extra tax withheld, high tax bills for the US person who moves to Canada, and so on.

Fidelity writes: no problems, you can still hold your IRAs with us and make changes to them as needed.  You have to close your regular accounts, which I already anticipated.

Vanguard says: not much, kind of a strange answer: "Our policies are going to lookvery similar to the other firms that you are speaking of." This could be yes to IRAs or could be no, and I am waiting for the ice storm in the South to pass and my representative to get back to the office to find out.  Note that the dreaded ice storm has not yet hit Boston, the home of Fidelity.

Anyway, I can always transfer all the IRAs to Fidelity to solve the problem.  But I better get out and buy some candles, duct tape, water, rice and milk for the dreaded ice storm that is mentioned on the TV every 10 minutes or so.

No comments:

Post a Comment

Comments are not moderated prior to posting. Mark