My wife and I lived and worked in the US for about 10 years. We both have IRA's. I would like to withdraw some of my IRA this year (2012) and in following years. I'm finding it difficult to get the information to do this. My IRA custodian (Fidelity) allows me to set the withholding amount (which I find a little strange). My understanding is: that the withholding should be set at 15% and that I need to file a 1040NR. On this t form I need to reference the Tax Treaty section(s) which allow for the 15% withholding ( instead of the nominal 30%) I would also report the distribution on my Canadian tax return and claim the taxes paid. Have I got this right? What are the tax treaty references I need to supply?

Thanks

The article for the 15% in the Canadian tax treaty is XVIII.

You can claim a tax credit on your Canadian return for the tax you pay on the Form 1040NR.