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Canadian withholding tax for IRA accounts


Ben_S

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Due to a tax treaty between the 2 countries, US brokers should not withhold Canadian tax in US investors' IRA accounts. However, I've heard of a number of brokers being unable/unwilling to comply with this.

 

For example, I've heard that while Interactive Brokers does not withhold for Toronto listed stocks, they do for NYSE listed Canadian companies. I've heard that Scottrade and Schwab also improperly withhold.

 

But I've heard that TD Ameritrade and Etrade may be good. But does anyone know of any others (or has anyone ever have issues with these 2)? Thank you

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