What American Instruments should you get out of Before you leave the USA

Finances
1

So I’m considering leaving the USA (permanently) which means there are certain things I should consider exiting Financially:

  1. Roth IRA are not recognized in many countries so withdrawing contributions tax free while in USA
  2. HSA
  3. FSA (short term issue)
  4. Can’t buy mutual funds when offshore so any you want (can buy ETFs)

Does anyone have a list to consider or something they wish they had done?

2

Commit to the process and renounce your citizenship…most of these questions are resolved!

3

I was curious about the first item & was having trouble finding references for unconventional IRA questions. Can a renounced person really still hold an IRA formed in the USA? Would not further withdrawals have a withholding tax deducted from them? (That’s hypothetical since I’m lacking proper sources.)

Also: what happens when non-US persons inherit an IRA? And if you still do have USA citizenship, do you have to demonstrate tax compliance and/or provide an SSN to receive a “Beneficiary IRA” that you inherit, or to withdraw the initial disbursement?

I hope it will help complement the original question if anyone knows of a source that can answer such IRA questions: or provide a comprehensive answer that addresses all the questions (whether renouncing or not) with some references. :pray:

4

When you renounce, you pay all presumed-owed taxes and your retirement accounts turn into cash, essentially. At least that is my understanding.

So no need to worry about the other questions after that!

6

So answering my own questions:

In a country with taxation treaty its usually

  1. 401k’s can be kept but you’ll just be taxed on withdrawal and taxed in other country as well but Foreign income tax exclusion applies
    IRAs are often treated this way
  2. Roth 401k and Roth IRA are not recognized and so subject to taxation on withdrawal by new country
  3. HSA’s are not recognized

For those not aware of the exit tax: