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This is for people planning to return to Canada one day. I haven’t done anything fancy due to potential tax complications. I have invested in US stocks using fidelity and made decent earnings over the past year. Obviously I will have to pay capital gains. Any suggestions for Canadians looking to move back to Canada in a few years? Is it worth it to use any tax sheltered accounts? I do contribute a bit to 401k through Amazon and I won’t touch this till later in life. Should I use Roth? Is there any point in trying to use tax sheltered accounts if I plan to just return to Canada within the next 5 years ? Also looking at buying a house in Canada in a couple of years. Thanks!
I’ll never move back
I dont know much about this subject but why wouldnt it be advantageous to use tax sheltered accounts right now? I assume the tax you will pay to take money out of the US and into Canada will be equivalent whether if you do it now vs in the future. So might as well take advantage of all the benefits you can while you have the option to grow any part of it tax free
I think there are fees + taxes to take money out of those accounts? I imagine for a few years stay in the US it’s probably not even worth the hassle but I wanted to see what other Canadians do.
Banks accounts are just regular bank accounts. Pretty sure the fee to send money to canada will be the same now vs 5 years later from them and inevitable for you. There is an early withdraw penalty for 401k accounts, but you already said you wont touch this money before retirement which sounds good. You’re getting employer match (assuming Amazon has it?) so you’re already set there. What accounts are you even referring to if not regular bank accounts and 401ks? There is an “exit tax” for green card holders I believe. Not sure if that’s applicable to you or avoidable even if you were a holder. So again to me it boils down to making the most advantageous financial choices these 5 years regardless of your decision to move the money to Canada at some point in the future