# Canadian needs US Brokerage Account, Also Tax Advice



## stephen67 (Aug 4, 2016)

And it is complicated.

My father passed away this year. He had an IRA (US equivalent to an RRSP) and I was the beneficiary. I maintained the IRA as an "inherited IRA" to avoid immediate tax. The broker is Fidelity.

Maintaining the account is fine, but Fidelity wants to without 30% tax on distributions (withdrawals). The Canada US tax treaty mandates 10%. To make this happen I need to obtain an ITIN (Individual Taxpayer Information Number) from the IRA. Fidelity must prepare a letter for me to to send to the IRS along with the application. They are unwilling. They say I have to reclaim the 20% by filing a tax return with the IRS. That is a last resort.

So I want to move the IRA to a more accommodating US broker. But a web search indicates most US brokers do not service Canadians.

Can anyone suggest a US brokerage that deals with Canadian clients. Only need the IRA account.

Failing that, what do I need to get the extra 20% tax back?

Failing that, do I get full credit on my Canadian return, even if my Canadian rate is lower than 30%?

Thank you
Stephen


----------

