Tax and other financial matters concerning Canadian professionals
in the U.S. and U.S. citizens in Canada Includes income and estate taxation, social security, health
insurance, retirement accounts, cross border tax issues, and other matters affecting your pocketbook.
Topic Administrator: Mark T. Serbinski, CA, CPA of Serbinski
Weinberg, Ltd. CPA's and Serbinski Partners, Chartered Accountants
After working for 20 years in Canada, I am now in the US on TN. I may return to Canada after working for 5-10 years. In Canada I contributed maximum CPP for 20 years. Question is: Have I reached my max CPP benefit? If so, is my contribution to US SS helping me if I don't contribute to it for 40 quarters. And if I do contribute for 40 quarters, will I be eligbile for both securities. Thanks. Jay
This has been covered in detail in other posts, but, in short, you qualify for CPP because you worked a year in Canada; nothing you do in US will increase or decrease your CPP payout (which is not maxxed out at this point)
For SS however, the fact that you have worked in canada for more than 8.5 years will mean that you will collect *some* SS with as little as a 6 quarters of SS contributions.
The more you work in US past 6 quarters, the more SS you will eventually get.
See totalization agreements on the international portion of the SSA website.
Thanks Nelson. That means in my situation SSA contributions are not being wasted, even if I have maxed for CPP benefits. In other words from CPP/SSA angle it is better to work (& contribute) in US than in Canada. May be I should apply for benefit at 60 (at 66% of max) and continue to work/contribute in US. How may years for one needs to make max contribution for max CPP benefits.
I don't even know if there is a max on CPP, but what does it matter?
Your actual earnings will be of more benefit to you both now and in future than whatever your CPP or SS, so go where they PAY you more, not based on future benefits.
Besides, the rules on SS and CPP change yearly, so don't plan on these.
Tax and other financial matters concerning Canadian professionals
in the U.S. and U.S. citizens in Canada Includes income and estate taxation, social security, health
insurance, retirement accounts, cross border tax issues, and other matters affecting your pocketbook.
Topic Administrator: Mark T. Serbinski, CA, CPA of Serbinski
Weinberg, Ltd. CPA's and Serbinski Partners, Chartered Accountants
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