Roth taxation question
Hi Discussion forum,
If you have a couple that are contribution to a Roth and are early career. Both work in the US. 1 spouse is a US Citizen and the other spouse is from Europe/Spain and has a SS number and green card. They plan to live in the US for many years.
Question, spouse from Europe moves back there in retirement (both spouses may move to Europe later), it sounds like the distributions from the Roth could be taxable? What if they maintain residence in US and Europe both, does that change anything?
Or would it be better to consider having the spouse that’s a US Citizen, fund the Roth?
Thank you for your help in advance.
Regards,
Brian
Permalink Submitted by Alan - IRA critic on Thu, 2025-05-08 15:58
It shouldn’t matter which spouse maintains the Roth. If the Roth is qualified all distributions are tax free to the US, but the tax treaty with the foreign country of residence will determine the extent of foreign country taxes. They would have to check into that applicable tax treaty.