Moving out of country
I have a client that is moving to Spain for good. She is 45. She has an Ira that she does not need the money until retirement. What are her options considering he will no longer have a u.s address?
I have a client that is moving to Spain for good. She is 45. She has an Ira that she does not need the money until retirement. What are her options considering he will no longer have a u.s address?
Permalink Submitted by mk foss on Thu, 2013-03-07 00:04
Custodians must withhold 30% U.S. tax when the person receiving benefits lives outside the U.S. So when she withdraws money after retirment, there will be federal withholding. A U.S. citizen pays tax on worldwide income no matter where they reside. She can still put off taking distributions until age 70-1/2. I’m assuming that she is not giving up her citizenship.
Permalink Submitted by Bruce Steiner on Thu, 2013-03-07 00:10
Is she a U.S. citizen? If not, check the treaty.
Permalink Submitted by mike collins on Mon, 2013-03-11 14:25
She is a US Citizen.. My question isn’t really on the taxes.. Its where can she hold the account.. She does not need or want this money currently. Can she move it to someone in Spain. My firm won’t allow us to hold and for me to manage if she doesn’t reside in the US.. Wjat can she do to keep her IRA?
Permalink Submitted by Bruce Steiner on Mon, 2013-03-11 16:19
Move the account to a different financial institution. If it will make it easier, use a mailing address in the United States.