Backdoor Roth and Canadian RRSP accounts
I have a client who is from Canada but hasn’t lived there in many years. He has all of his retirement / qualified savings held within his company 401(k) with no IRAs currently set up. We want to start funding a backdoor Roth IRA and don’t know if the roughly $18k he has in a Canadian RRSP account will be included in the calculation when converting the non-deductible contribution to his Roth IRA? We’ve checked with the clients CPA and after a week of research concluded they wouldn’t be able to give an opinion. Does anyone have experience with this specific scenario? Thanks.
Permalink Submitted by Alan - IRA critic on Mon, 2017-02-06 20:17
Only non Roth IRAs are included in the determination of the taxable portion of a distribution or conversion from an IRA. An RRSP is not an IRA and is not a domestic account, so would not be included. Further, an RRSP cannot be rolled into an IRA.