Roth 401k when Moving Back to Canada

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RosensNew Member
Topic author
Posts: 1
Joined: 3 May 2011

Roth 401k when Moving Back to Canada

Post Tue May 03, 2011 7:50 am

I searched all over for an answer to this but couldn't find anything specific.

I have a Roth 401k through work. What is my BEST option seeing as I'm moving back to Canada later this month (I have 3 weeks):

A) Leave it and do nothing (don't think this is an option)
B) Transfer it to a Roth IRA and leave it in the US
C) Cash it out and take the loss
D) Transfer it somehow to an RRSP in Canada. If this option is the best (which I assume it is), what are the steps to do so? I read somewhere that it is best to transfer my Roth 401k to a Roth IRA then somehow transfer to RRSP but can't figure out the best way.

Specific details - I don't have a huge amount in the Roth 401k (~3k), I am a non-resident of Canada, but a Canadian citizen.
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agnelsonCanuckAbroad VIP
Posts: 3264
Topics: 1
Joined: 26 Aug 2009

Re: Roth 401k when Moving Back to Canada

Post Tue May 03, 2011 10:13 am

I talk about this more at forums.serbinski.com.

You should NOT transfer it to an RRSP, since this takes tax-free money and makes it taxable.

Since it is so small, I would simply take the money, pay the penalty on any growth, and move on.

You will also probably have some comapny matching, which would be fully taxable and penalized when taking.
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