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--- retirement_accounts [2025/11/02 02:26] – [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:
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 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 =====
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   * 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 ======
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 ====== 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.