Quote:
Originally Posted by missiyaki
Thanks all for the answers to my questions in my previous thread. I have a new set of questions, hopefully someone can answer.
Say you have permanent residency, and you are contributing to some kind of retirement savings plan through your employer, what happens if you leave the country before you get citizenship? As a hypothetical situation, say I get PR, stay in the US 3-5 years, but then go back to Canada - what happens to that retirement savings? Or - say I gain citizenship but then decide to retire back in Canada..??
Sorry if these sound like really elementary questions, but i honestly have no idea how that stuff works.
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It depends on what type of retirement plan it is.
A plan like a 401K, you can withdraw from your retirement plan if you leave, or you can just leave it in there until you reach retirement age . It might or might not have have early withdrawal penalty, and also it will have tax implications in the US and possibly for Canada. Rather you have are on a work visa, PR or citizenship doesn't make a difference on this matter.
More information below on different types of retirement plans:
Tax Information for Retirement Plans
This is not to be confused with OAS and CPP. The US and Canada have an reciprocal agreement . More information here:
United States - Pensions and Benefits - Service Canada
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