Post #2032139
2026-05-01 17:01 UTC
I have successfully removed my 401K from US to Canada in an RRSP. The sum is not a lot and I did pay penalty and taxes but I'd rather than something than nothing. For Canadian friends who are on the fence, note that this is covered by a treaty
> Canada–U.S. tax treaty - Paragraph 60(j) of the Income Tax Act
To avoid paying taxes on Canadian side you can put this into your RRSP etc. if you have room.
Replies (1)
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@amanjeev@cosocial.ca 2026-05-01 17:04
However, for US side you will have to pay treaty taxes at best, and full blown taxes and penalty if the 401K holding institution does not honour it and you will have to file US taxes the following year to get the refund. You can share a filled form W-8BEN with your 401K institution to say you are covered under treaty but they do not have the obligation to acknowledge it or even acknowledge that you exist haha.