Information about everything from tax bureaucracy to international audits. News and updates. Speeches, conferences and workshop registrations. Packing advice. Phil’s jet-lagged musings on Swiss banks and the “quitting conversation.”

Income Taxation of a Covered Expatriate’s 401(k) Plan

Online Workshop For Noncovered Expatriates – 16 and 23 January 2015 We are running our patented Online Workshop for Noncovered Expatriates starting this Friday. There are two sessions (January 16 and January 23), each 90 minutes, but last time we did it we ran probably double that length. We stick around until we answer every […]

Covered Expatriates and Their IRAs After Expatriation

This week we look at covered expatriates and IRAs after expatriation. How do IRAs behave after expatriation? How are distributions taxed? What is the strategically best choice–keep your money in the IRA or close it, take the
money, and run?

To keep things relatively short, I am only going to talk about regular IRAs.

Roth IRAs and Covered Expatriates

This week’s question is about Roth IRAs and covered expatriates. It comes from reader R, who said he is a covered expatriate. Lightly edited, his question is:

One of my accounts is a Roth IRA, funded many years ago but now grown to about $40,000. What happens to this? I over 59.5 years old and can withdraw the money tax-free before I expatriate. Might the protection of that end once I expatriate, in which case, should I make tax free withdraw now, before expatriation?

Death as an exit tax avoidance strategy, part 2

This week's episode was written in stages. I started writing this while sitting in Seat 25C on U.S. Airways flight 865 en route to Sint Maarten. I rarely fly U.S. Airways, because the planes are usually well worn. It's like riding a bus. On this flight, two of the three seat trays in row 25 […]

Death as an exit tax avoidance strategy, part 1

This Week This week's question comes from Daniel Hayden, a German tax lawyer I know. He is a fountain of interesting ideas. Hi Phil, Here is another question, that – as far as I remember – has not been covered in your question-of-the-week-emails: Is there any exit tax, if a green card holder, who returned […]