Butch
New Member

Canada tax

I have a RRSP (like 401k) in Canada. They withhold 15% from the annual distribution to persons outside Canada. Is the distribution also taxable in the US?

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I assume that you are talking about a RIF as you are dealing with an annual distribution. A RIF is just an RRSP converted at age 71 as required to a pension income payer with minimum annual payments of around 5%.

The answer is that you must include the gross income on your tax return and the 15% withheld is eligible for foreign tax credit calculation.