I’m a Canadian, and have been living in the US for the last three years. I’m planning on staying here for longer, and read something the other day about avoiding Roth IRA accounts and that they are bad to hold. But I’ve also read that they are fine? I’m confused, what is the right answer here?
The key issue here is “Canadian” vs “American”. There are actually no issues when a Canadian holds a US IRA or 401k. As you’re a Canadian, there are no problems for you.
But, if you’re an American living in Canada, holding a Canadian TFSA or RESP is an issue. The IRS generally treats these as foreign trusts, and needs a bunch of trust paperwork filings related to the holdings.
Usual Disclaimer: This information is for general information purposes only, and deals with complicated and time-sensitive info that may not apply to your situation. Tax rules are always changing, and this information may not be current. Tax is complicated, this information is not tax advice, and don’t rely on this info to make tax decisions – Hire someone to help you.