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Just ask the IRS. There are some restrictions regarding taking early retirement, including how much money you can earn, but once you're at your full retirement age, you're just taking out money for a program you paid into that you're entitled to, regardless of how much you also get from other sources - from how I understand it.
OP, I am also a dual citizen with US and Canada. The answer is you can collect both if you are eligible. BUT, the US will implement WEP if you have less than 30 years of substantial payments. If you Canadian is small this becomes insignificant. I clam my Canadian and have not yet claimed my US one. I also have a UK pension that I have not claimed as it is bigger than the Canadian.
From what I understand, WEP is levied once, so when I claim my US SS WEP will be levied on my small Canadian Pension.
Just ask the IRS. There are some restrictions regarding taking early retirement, including how much money you can earn, but once you're at your full retirement age, you're just taking out money for a program you paid into that you're entitled to, regardless of how much you also get from other sources - from how I understand it.
NOT the IRS. You mean the Social Security Administration! ssa.gov
OP, I am also a dual citizen with US and Canada. The answer is you can collect both if you are eligible. BUT, the US will implement WEP if you have less than 30 years of substantial payments. If you Canadian is small this becomes insignificant. I clam my Canadian and have not yet claimed my US one. I also have a UK pension that I have not claimed as it is bigger than the Canadian.
From what I understand, WEP is levied once, so when I claim my US SS WEP will be levied on my small Canadian Pension.
where it says: "A CPP/QPP pension may affect your U.S. benefit
If you qualify for Social Security benefits from the United States based only on U.S. credits and a CPP/QPP benefit from Canada, the amount of your U.S. benefit will be reduced."
"A U.K. pension may affect your
U.S. benefit
If you qualify for Social Security benefits from both the United States and the United Kingdom
and did not need the agreement to qualify for either benefit, the amount of your U.S. benefit
may be reduced."
Canadian born US Citiezen retiring back in Canada. What happens to Pension?
Quote:
Originally Posted by Home Addict
I am a dual citizen of Canada and US. Since Canada's retirement age is 65 and US is 67 (in my case), is it possible to first apply for Canada's retirement plan from 65-67, then switch over to the US retirement plan?
Note I am collecting from only one system at any one time. Is there any legal implication from US and Canada.
Home Addict. I think you may be leaving money on the table. If you put in to both you can receive both.
I worked , legally,full time for 9 years in Nerw York,USA before moving (in 2000) to Canada.As a Canadian citizen,started a full time job in 2002,paying all taxes to Canada. I learned that ,to get full USA Social Securty pension and need 40 credits(equal 10 years), while I worked and paid SS tax for 9 years to USA.I already have got a copy of my contribution records from USA social security.
I heard that "" Under a process called "totalization" the SSA will credit for CPP contributions,to be enough credit to get the 10 years needed for a Social Security pension.
Now next year I will be 65 years old and plan for retirement.
My questions are,
1- Do I qualify to get Social security Pension from USA,while working,living in Canada ?
2- When and how to apply for , in receiving in Canada ?.
3-Do I need a lawyer to apply or I can apply myself,please ?
4-Do I need to call and get appointment with Social security office in Niagra Falls,NY,USA ?
OP, I am also a dual citizen with US and Canada. The answer is you can collect both if you are eligible. BUT, the US will implement WEP if you have less than 30 years of substantial payments. If you Canadian is small this becomes insignificant. I clam my Canadian and have not yet claimed my US one. I also have a UK pension that I have not claimed as it is bigger than the Canadian.
From what I understand, WEP is levied once, so when I claim my US SS WEP will be levied on my small Canadian Pension.
Wow, did not realize that WEP applied to foreign pensions.
It does apply to employees that have a pension like the old Civil Service retirement pensions. My social security benefit was reduced from 550 a month to 180 dollars a month.
WEP is serious stuff.
You really want to be SURE on how it applies to your situation.
BTW...I did pay into Canada Pension, but Social Security was totally clueless about how it applied in my case. It didn't matter in my case, but it sounds like it DOES MATTER in your case.
You might want to find somebody that REALLY understands the WEP provision. That would NOT be the Social Security Administration.
Wow, did not realize that WEP applied to foreign pensions.
It does apply to employees that have a pension like the old Civil Service retirement pensions. My social security benefit was reduced from 550 a month to 180 dollars a month.
WEP is serious stuff.
You really want to be SURE on how it applies to your situation.
BTW...I did pay into Canada Pension, but Social Security was totally clueless about how it applied in my case. It didn't matter in my case, but it sounds like it DOES MATTER in your case.
You might want to find somebody that REALLY understands the WEP provision. That would NOT be the Social Security Administration.
Explanation of impact of WEP on Social Security benefit.
"The Windfall Elimination Provision (WEP) is a formula used to adjust Social Security worker benefits for people who receive “non-covered pensions” and qualify for Social Security benefits based on other Social Security–covered earnings. a A non-covered pension is a pension paid by an employer that does not withhold Social Security taxes from your salary, typically, state and local governments or non-U.S. employers.
Congress passed the WEP to prevent workers who receive non-covered pensions from receiving higher Social Security benefits as if they were long-time, low-wage earners. b In 2020, the WEP applied to 3.0 percent of all beneficiaries (1.95 million beneficiaries out of 64.85 million total beneficiaries)."
Which country do you claim as your residence; you can't have both? It's probably the one where you live and pay taxes now. If you're a US resident, you may only be able to claim Canadian benefits based on your work history and contributions - that's been my understanding as a dual citizen residing in the US. If you reside in Canada, you can still obtain Social Security based on your work history, but there would be no point in taking any but the free Part A of Medicare.
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Canadian born US Citiezen retiring back in Canada. What happens to Pension?
