Differences

This shows you the differences between two versions of the page.

--- retirement_accounts [2025/11/02 02:17] – [Expats and KYC] jhagstrand
+++ retirement_accounts [2026/03/01 04:06] (current) – jhagstrand
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 ======Retirement Accounts======
+[[American Expat Retiree Financials | contents]]
 There are two kinds of retirement account:
@@ Line 19: / Line 21: @@
 Typically a worker and/or his employer make contributions to the plan while the worker is working.
 When the worker retires, he begins to make withdrawals.
+Immediately upon leaving an employer, the employee is advised to transfer any pension plan to a self-directed IRA.
 ===== Retirement Withdrawal Strategy =====
@@ Line 50: / Line 54: @@
   * taxable - normal brokerage account
   * tax-free - Roth IRA
+====== RMD and Roth Conversion ======
+RMD is a scam.
+Roth Conversion is the antidote.
+IRAs can be combined. 401k must be taken individually.
+balance for the previous year, divided by the distribution period
+use Table III. Uniform Distribution Period - this is used by the retiree/owner of the account
+begins the for the tax year in which you turn 72, distribution year when you turn 73. The first year only, you get an extra four months to take the distribution.
+Take your first RMD in the year you turn 73 (2025), due before 31 Dec 2025.
+Based on the balance at the end of the previous tax year (2024).
 ====== Roth Conversion ======
@@ Line 377: / Line 397: @@
 ====== Expats and KYC ======
-The transfer or rollover becomes especially important when an expat finds his IRA account frozen or closed because of [[https://docs.google.com/document/d/1sVQLilYeMNg3VUb3W89dxkSjIDqaVTW_g1TG1DuJbKE/edit?tab=t.0#heading=h.7oc6x4rfwhq5|Know Your Customer]] (KYC) rules. In the worst case, when the old custodian believes his customer has left the US, the account is closed and a check sent to the customer’s American address on file. In this event, the customer must open a new IRA account at Interactive Brokers or Charles Schwab International, and deposit the check within 60 days.
+The transfer or rollover becomes especially important when an expat finds his IRA account frozen or closed because of [[Know Your Customer]] concerns.  For example, when a custodian considers his customer to have left the USA, the customer may close the customer's account and send a check for the proceeds to his American address on file. In this event, the customer must open a new IRA account at Interactive Brokers or Charles Schwab International, and deposit the check within 60 days to effect an indirect rollover.  If he gets delayed and misses the 60-day timeframe, the transaction will be treated as a taxable distribution of the full amount.
 I have no data from anyone who has experienced this, but the following articles describe the phenomenon.
-=== H&R Block: What are the rules on IRAs for US citizens living abroad? ===
+===Sources===
+**H&R Block: What are the rules on IRAs for US citizens living abroad?**\\
 Oct 2022\\
 https://www.hrblock.com/expat-tax-preparation/resource-center/income/retirement/what-are-the-rules-on-iras-for-u-s-citizens-living-abroad/?srsltid=AfmBOor6uuYvzcwIsCEY9WlBwXJqgQgGM49DHmhLPYloqiDPDrmJqHUj\\
 Yes, a U.S. citizen living abroad can have both a traditional and/or Roth IRA. The restrictions only come with making contributions—so, if you had an existing IRA before you moved abroad, you don’t have to get rid of it or transfer assets, but you may not be able to add to it while you’re overseas.
-=== Harrison Brook: Your IRA in the US is closing? How to quickly rollover as an expat. ===
+**Harrison Brook: Your IRA in the US is closing? How to quickly rollover as an expat.**\\
 May 2023, by Ryan Frost\\
 https://harrisonbrook.com/your-ira-in-the-us-is-closing-how-to-quickly-roll-over-as-an-expat/\\
 When these firms discover a customer no longer physically resides in the United States, they may freeze their brokerage accounts or force American expats to liquidate their investment holdings.
-=== Harrison Brook: Can American Expats keep an old address on their US brokerage accounts? ===
+**Harrison Brook: Can American Expats keep an old address on their US brokerage accounts?**\\
 th March 2024 by Ryan Frost\\
 https://harrisonbrook.com/can-american-expats-keep-an-old-address-on-their-us-brokerage-accounts/\\
@@ Line 401: / Line 420: @@
 As it is not illegal, should you disclose your current residential address to your investment institutions?
-=== Investments For Expats (IFE): What happens if your IRA account closes down as a US expat? ===
+**Investments For Expats (IFE): What happens if your IRA account closes down as a US expat?**\\
 byline Henry Temple-Baxter\\
 https://investmentsforexpats.com/what-happens-if-your-ira-account-closes-down-as-u-s-expat/\\
 [This page is largely a duplicate of Ryan Frost’s article above.]
-=== Greenback: Moving Your Retirement Account Overseas ===
+**Greenback: Moving Your Retirement Account Overseas**\\
 Jan 2025\\
 https://www.greenbacktaxservices.com/knowledge-center/expat-retirement-planning/\\
 First, some US retirement plan administrators are unwilling to work with a person who no longer lives in the United States. In some cases, they may freeze the 401(k) (in terms of not accepting new contributions to the 401(k)), and in other cases, they may even close the 401(k). Thus, you must retain a US retirement plan administrator who can work with US expats.
-=== Chase Buchanan: US-Connected Persons ===
+**Chase Buchanan: US-Connected Persons**\\
 no date, no author byline\\
 https://chasebuchanan.com/services/us-connected-persons/\\
 Professional advice is even more important for US expats, given that a substantial proportion of banks and financial institutions based in America will not serve clients living abroad.
-=== The Wealth Genesis: Managing Your US IRA As An Expat ===
+** The Wealth Genesis: Managing Your US IRA As An Expat**\\
 no date, no author byline\\
 https://www.thewealthgenesis.com/insights/managing-your-us-ira-as-an-expat\\