# Can Roth IRA withdrawal reduce my Guaranteed Income Supplement ?



## matts19 (Nov 26, 2013)

Hi folks,

I have sizable amount invested in Roth IRA which I heard was basically equivalent to TFSA in Canada. When I retire in Canada, and withdraw money monthly from my Roth IRA, I understand that such withdrawal will not be taxed per CAN/US social security agreement, assuming of course it is a qualified withdrawal.

But I don't know whether Roth IRA withdrawal will decrease/eliminate the Guaranteed Income Supplement (GIS)? I am projecting that OAS + US social security payment will not be enough to live on, so that is why I need to withdraw from Roth IRA. But if I this would reduce GIS, then I would have to draw that much more money from Roth IRA, making my retirement planning more tricky in that case. I will have almost no money (practically 0) from CPP or RRSP as I have not worked that much in Canada.

I have scoured the Internet but there is no clear answer on this anywhere. Does anyone know for sure what the rule is on this one? I appreciate your advice.


----------



## Dogger1953 (Dec 14, 2012)

matts19 said:


> Hi folks,
> 
> I have sizable amount invested in Roth IRA which I heard was basically equivalent to TFSA in Canada. When I retire in Canada, and withdraw money monthly from my Roth IRA, I understand that such withdrawal will not be taxed per CAN/US social security agreement, assuming of course it is a qualified withdrawal.
> 
> ...


matts - I don't remember Roth IRAs existing when I worked for Service Canada, but as a general rule if something is not taxable it won't be considered as income for GIS purposes. I would suggesting contacting Service Canada at 1-800-277-9914 to see what they say.


----------

