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Rollover IRA for nonresident
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John Levine
Feb 9, 2012, 11:23:56 AM2/9/12
to
I have a friend who is a US citizen living in the UK. She has an IRA
left over from before she moved to the UK, and the current custodian
has told her they won't handle it any more because they don't serve
nonresidents. (From what I've seen of that custodian, no great loss.)
So she wants to roll it over to a different custodian. The amount is
not huge, anyone with decent CDs or bond funds will do.
Poking around at web sites of the usual suspects, I don't see any of
them that let you set up an IRA account from a foreign address. Is
there a tax issue, or is it just that it is sufficiently arcane that
it's not worth programming into the web site?
R's,
John
Unrelated bonus question: is there any sort of reciprocal tax
treatment for British ISAs like there is for Canadian RRSPs?
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left over from before she moved to the UK, and the current custodian
has told her they won't handle it any more because they don't serve
nonresidents. (From what I've seen of that custodian, no great loss.)
So she wants to roll it over to a different custodian. The amount is
not huge, anyone with decent CDs or bond funds will do.
Poking around at web sites of the usual suspects, I don't see any of
them that let you set up an IRA account from a foreign address. Is
there a tax issue, or is it just that it is sufficiently arcane that
it's not worth programming into the web site?
R's,
John
Unrelated bonus question: is there any sort of reciprocal tax
treatment for British ISAs like there is for Canadian RRSPs?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
bo peep
Feb 9, 2012, 5:47:00 PM2/9/12
to
On Feb 9, 9:23 am, John Levine <jo...@iecc.com> wrote:
> Poking around at web sites of the usual suspects, I don't see any of
> them that let you set up an IRA account from a foreign address. Is
> there a tax issue
Yes (sort of) - a complication with the foreign earned income
> Poking around at web sites of the usual suspects, I don't see any of
> them that let you set up an IRA account from a foreign address. Is
> there a tax issue
exclusion. See
http://taxes.about.com/od/retirementtaxes/qt/Individual-Retirement-Accounts-For-Americans-Working-Abroad.htm
She will need income which is greater than $91,500 (for 2010) to be
able to contribute to an IRA.
John Levine
Feb 9, 2012, 5:59:59 PM2/9/12
to
>> Poking around at web sites of the usual suspects, I don't see any of
>> them that let you set up an IRA account from a foreign address. Is
>> there a tax issue
>
>Yes (sort of) - a complication with the foreign earned income
>exclusion. See
>http://taxes.about.com/od/retirementtaxes/qt/Individual-Retirement-Accounts-For-Americans-Working-Abroad.htm
>
>She will need income which is greater than $91,500 (for 2010) to be
>able to contribute to an IRA.
Sigh. As I think I said pretty clearly, the question is about rolling
>> them that let you set up an IRA account from a foreign address. Is
>> there a tax issue
>
>Yes (sort of) - a complication with the foreign earned income
>exclusion. See
>http://taxes.about.com/od/retirementtaxes/qt/Individual-Retirement-Accounts-For-Americans-Working-Abroad.htm
>
>She will need income which is greater than $91,500 (for 2010) to be
>able to contribute to an IRA.
over an existing IRA, not about new contributions.
Here's the same question again: Is it a legal problem for a US citizen
who is nonresident to set up a new IRA and roll an existing IRA into
it?
R's,
John
Reed
Feb 9, 2012, 7:16:50 PM2/9/12
to
On 2/9/12 5:59 PM, John Levine wrote:
>>> Poking around at web sites of the usual suspects, I don't see any of
>>> them that let you set up an IRA account from a foreign address. Is
>>> there a tax issue
>>
>> Yes (sort of) - a complication with the foreign earned income
>> exclusion. See
>> http://taxes.about.com/od/retirementtaxes/qt/Individual-Retirement-Accounts-For-Americans-Working-Abroad.htm
>>
>> She will need income which is greater than $91,500 (for 2010) to be
>> able to contribute to an IRA.
>
> Sigh. As I think I said pretty clearly, the question is about rolling
> over an existing IRA, not about new contributions.
>
> Here's the same question again: Is it a legal problem for a US citizen
> who is nonresident to set up a new IRA and roll an existing IRA into
> it?
>
> R's,
> John
>
Because my son may soon be in same position, I just now looked at
>>> Poking around at web sites of the usual suspects, I don't see any of
>>> them that let you set up an IRA account from a foreign address. Is
>>> there a tax issue
>>
>> Yes (sort of) - a complication with the foreign earned income
>> exclusion. See
>> http://taxes.about.com/od/retirementtaxes/qt/Individual-Retirement-Accounts-For-Americans-Working-Abroad.htm
>>
>> She will need income which is greater than $91,500 (for 2010) to be
>> able to contribute to an IRA.
>
> Sigh. As I think I said pretty clearly, the question is about rolling
> over an existing IRA, not about new contributions.
>
> Here's the same question again: Is it a legal problem for a US citizen
> who is nonresident to set up a new IRA and roll an existing IRA into
> it?
>
> R's,
> John
>
Vanguard and Fidelity's online application forms for transfering IRAs
between institutions, and they both allowed for addresses outside the
US (fill-in box for "Country").
So unless there is more to know, it does not seem to be an issue, as
long as funds stay in the US.
FWIW, it seems that "rollover" is wrong term to use vs. "transfer"
--
Message has been deleted
Stuart A. Bronstein
Feb 9, 2012, 8:54:02 PM2/9/12
to
"D. Stussy" <spam+ne...@bde-arc.ampr.org> wrote:
> "John Levine" <jo...@iecc.com> wrote
> friend's/relative's or PO Box). That should solve the problem.
Clearly that is an answer. The question is whether that is legally
necessary. I'm not an expert on IRA's, but the brief research I have
done discloses no requirement that someone holding an IRA have a US
address.
___
Stu
http://DownToEarthLawyer.com
> "John Levine" <jo...@iecc.com> wrote
>>
>> Here's the same question again: Is it a legal problem for a US
>> citizen who is nonresident to set up a new IRA and roll an
>> existing IRA into it?
>
> Have her get a local address (including using a
>> Here's the same question again: Is it a legal problem for a US
>> citizen who is nonresident to set up a new IRA and roll an
>> existing IRA into it?
>
> friend's/relative's or PO Box). That should solve the problem.
Clearly that is an answer. The question is whether that is legally
necessary. I'm not an expert on IRA's, but the brief research I have
done discloses no requirement that someone holding an IRA have a US
address.
___
Stu
http://DownToEarthLawyer.com
John Levine
Feb 10, 2012, 12:13:34 AM2/10/12
to
>> Here's the same question again: Is it a legal problem for a US citizen
>> who is nonresident to set up a new IRA and roll an existing IRA into it?
>
>> who is nonresident to set up a new IRA and roll an existing IRA into it?
>
>Have her get a local address (including using a friend's/relative's or PO
>Box). That should solve the problem.
Hmmn. I don't think I asked "How could she lie and claim that she's a
>Box). That should solve the problem.
US resident, possibly causing all sorts of other problems since she is
and wants to be a UK resident?"
So here, one more time, is the question: Is it a legal problem for a
US citizen who is nonresident to set up a new IRA and roll an
existing IRA into it?
If you don't know the answer, it's OK not to write back.
existing IRA into it?
Alan
Feb 10, 2012, 9:55:38 AM2/10/12
to
On 2/9/12 10:13 PM, John Levine wrote:
>
> So here, one more time, is the question: Is it a legal problem for a
> US citizen who is nonresident to set up a new IRA and roll an
> existing IRA into it?
>
No.
>
> So here, one more time, is the question: Is it a legal problem for a
> US citizen who is nonresident to set up a new IRA and roll an
> existing IRA into it?
>
--
Alan
http://taxtopics.net
Message has been deleted
Stuart A. Bronstein
Feb 10, 2012, 4:35:59 PM2/10/12
to
>> So here, one more time, is the question: Is it a legal problem
>> for a US citizen who is nonresident to set up a new IRA and
>> roll an existing IRA into it?
>>
>> If you don't know the answer, it's OK not to write back.
>
> She's a U.S. citizen. Residency doesn't matter.
>> for a US citizen who is nonresident to set up a new IRA and
>> roll an existing IRA into it?
>>
>> If you don't know the answer, it's OK not to write back.
>
And Stussy certainly knows the answer.
I went back to look at §408(d). The statute specifies no requirement
that a rollover be limited to US residents.
___
Stu
http://DownToEarthLawyer.com
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