Keeping Roth and Investment Accounts
If I move back to the UK as a US citizen I think I can keep any existing Roth and investment accounts as long as you report them via FBAR etc, with no extra tax payable if your total income is below the IRS's "Excludable amount" for the reporting tax year. You may not be able to contribute to them anymore if you are not domicile in the US for tax purposes.
Can anyone clarify or share their knowledge on this one? |
Re: Keeping Roth and Investment Accounts
You may want to read this thread https://britishexpats.com/forum/usa-...counts-906441/. Technically you are correct, but occasionally there are issues.
|
Re: Keeping Roth and Investment Accounts
I kept my Roth and investment accounts when I moved back to the U.K. I am a dual US/U.K. citizen. No need to report them on FBAR as they are not foreign accounts. Income from the investments is taxable in both countries and distributions from the Roth are tax free in both countries. Foreign tax credits are used to eliminate double taxation.
I can’t contribute to the Roth because I don’t have any earned income in the US, just pensions. |
Re: Keeping Roth and Investment Accounts
Originally Posted by durham_lad
(Post 12885760)
I kept my Roth and investment accounts when I moved back to the U.K. I am a dual US/U.K. citizen. No need to report them on FBAR as they are not foreign accounts. Income from the investments is taxable in both countries and distributions from the Roth are tax free in both countries. Foreign tax credits are used to eliminate double taxation.
I can’t contribute to the Roth because I don’t have any earned income in the US, just pensions. |
Re: Keeping Roth and Investment Accounts
Originally Posted by mrken30
(Post 12885782)
I know we are not meant to advertise, but seeing that Fidelity are known for wanting to close non-US resident accounts, which company do you have your investments with?
|
Re: Keeping Roth and Investment Accounts
Got it mrken30 and Durham lad - of course no FBAR, what was I thinking! As you say with the treaties I guess you'd only end up paying tax in 1 country.
I'd also have no earned income on returning to the UK so the accounts would just be there to fund stuff/retirement. |
Re: Keeping Roth and Investment Accounts
Originally Posted by mrken30
(Post 12885782)
I know we are not meant to advertise, but seeing that Fidelity are known for wanting to close non-US resident accounts, which company do you have your investments with?
|
Re: Keeping Roth and Investment Accounts
Originally Posted by freerskier
(Post 12885857)
Ooo, really - My Roth and Investment account plus my 401k are with Fidelity.
|
Re: Keeping Roth and Investment Accounts
Originally Posted by durham_lad
(Post 12885794)
My wife’s IRAs and investments were with Fidelity and mine were with Vanguard so before we moved back she opened an account with Vanguard and we moved all her Fidelity funds to Vanguard. We also implemented “agent authorization” over each other’s accounts so the accounts are very easily managed, even from the UK.
I am thinking maybe that's a smart thing to do as it may not raise the same flags. There are also options like Blooom that manage your account to reduce fees. Blooom is quite inexpensive, $95 a year. Thanks for this. |
Re: Keeping Roth and Investment Accounts
Thanks for all the interesting info - Bloom looks intriguing. I'm currently in the US and probably wont return for at least a year or so.
If anyone has used and "authorizing agent" how does it work? Is it like giving them a form of power of attorney to agreed/restricted parameters over your investment account/IRA/Roth? |
Re: Keeping Roth and Investment Accounts
Originally Posted by freerskier
(Post 12885909)
Thanks for all the interesting info - Bloom looks intriguing. I'm currently in the US and probably wont return for at least a year or so.
If anyone has used and "authorizing agent" how does it work? Is it like giving them a form of power of attorney to agreed/restricted parameters over your investment account/IRA/Roth? |
Re: Keeping Roth and Investment Accounts
Originally Posted by mrken30
(Post 12885901)
Do you have a US based agent authorized to manage your accounts?
I am thinking maybe that's a smart thing to do as it may not raise the same flags. There are also options like Blooom that manage your account to reduce fees. Blooom is quite inexpensive, $95 a year. Thanks for this. |
Re: Keeping Roth and Investment Accounts
Originally Posted by freerskier
(Post 12885909)
If anyone has used and "authorizing agent" how does it work? Is it like giving them a form of power of attorney to agreed/restricted parameters over your investment account/IRA/Roth? |
Re: Keeping Roth and Investment Accounts
Originally Posted by durham_lad
(Post 12886127)
I think it works as you describe. When my wife and I set one another up as authorized agents over each other’s accounts then we were able to specify the levels of authority the agent would have. We gave each other complete authority over our accounts.
I also have access to my wife's account so that I can legally contribute and buy/sell funds. These are my options. But I am thinking the US based agent/CPA/Financial adviser might be a good way to go. Thanks for this. https://cimg3.ibsrv.net/gimg/british...4fb03fa881.jpg |
All times are GMT. The time now is 5:30 pm. |
Powered by vBulletin: ©2000 - 2024, Jelsoft Enterprises Ltd.
Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.