Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Whether income inclusion that is spread over 4 years from conversion of ordinary IRA to Roth IRA is taxable in Canada where taxpayer was not a resident in Canada in the year of conversion.
Position: Unable to provide an opinion
Reasons: Draft legislation not yet released
XXXXXXXXXX 992438
S. E. Thomson
October 21, 1999
Dear XXXXXXXXXX
Re: Roth IRAs and Four-Year Income Inclusion
This is in reply to your letter of August 25, 1999 concerning the Department of Finance News Release 98-129 dated December 18, 1998, and in which you ask for our general comments with respect to a taxpayer's position concerning a "Roth IRA".
It appears that your request involves both specific taxpayers and completed transactions. Since the responsibility for determining the tax consequences arising from completed transactions rests with the tax services offices, the enquiry should be addressed to the taxpayer's local tax services office. Although we cannot comment directly on these situations, it is our usual practice to provide general comments on specific provisions of the Income Tax Act.
However, in your situation we are unable to provide our comments since such comments must be based on existing or pending legislation. Legislation with regard to Roth IRAs has not yet been released. We will hold your letter until such legislation is available, and will provide our general comments at that time.
Yours truly,
P. Spice
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
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