Welcome to the forum.
- Non-US investors and ETF currencies
- Currency risk for non-US investors
The Roth is easier. You can take the contributions element out at any time, and also conversions provided you meet the five-year holding restriction. For gains in the Roth though, tax and again a 10% early withdrawal penalty (if not negated by treaty). Or you can leave the Roth in place until you retire, and again deal with any home country tax issues it creates.
For the taxable account, how painful is it to keep this tax-wise in your home country? What does it hold? ETFs? Mutual funds? Stocks? Bonds? A mix? Will your existing manager even let you keep it now you are no longer a 'US person'?
If you decide to move it out of the US, for directly held stocks and ETFs (that is, things traded on an exchange), you can probably move those to another broker, perhaps even a local one, without having to sell or otherwise move to cash. This might save you some tax. It is much less likely that you will be able to do that with mutual funds, and perhaps also directly held bonds, in which case selling and moving the cash to local accounts, accepting any local tax hits, may be the best you can do.
- Permanently leaving the US
In particular, have you made sure that you do not face the US's punitive and execrable 'expatriation tax'? Over a long enough period, this has the capacity to entirely destroy your retirement prospects.
You don't say how long you held the green card for, but based on the numbers you gave you are probably comfortably below its $2M asset trigger, and likely under the annual tax level triggers as well. But since you have been living outside the US but with a green card for three years, you also have to be sure to be fully compliant with each and every stupid US tax rule for non-US residents (easy to slip up when living abroad) to avoid being deemed a 'covered expatriate'.
An ETF's trading and denomination currencies do not affect your long-term investing results. Details in the wiki:1. How does the New Investments portfolio look to you?
- I am leaning toward EUR currency ETFs, to avoid dealing with currency fluctuation. They do tend to have higher cost ratios. Is it still reasonable to stick with EUR?
- Non-US investors and ETF currencies
- Currency risk for non-US investors
You cannot easily move the 403b out of the US intact. Your choices there will be to either leave it until you retire, while dealing annually with any tax annoyances it creates in your home country, or take it early, taxable, and potentially face a 10% early withdrawal penalty on top. ('Potentially' because some interpretations of some US tax treaties, those reserving tax to country of residency only for pensions, suggest that the treaty also protects from the 10% early withdrawal penalty).2. What should I do with the mess I have in the US? Do I need to get my investments out of the US now that I do not hold a green card? How does one go about that?
The Roth is easier. You can take the contributions element out at any time, and also conversions provided you meet the five-year holding restriction. For gains in the Roth though, tax and again a 10% early withdrawal penalty (if not negated by treaty). Or you can leave the Roth in place until you retire, and again deal with any home country tax issues it creates.
For the taxable account, how painful is it to keep this tax-wise in your home country? What does it hold? ETFs? Mutual funds? Stocks? Bonds? A mix? Will your existing manager even let you keep it now you are no longer a 'US person'?
If you decide to move it out of the US, for directly held stocks and ETFs (that is, things traded on an exchange), you can probably move those to another broker, perhaps even a local one, without having to sell or otherwise move to cash. This might save you some tax. It is much less likely that you will be able to do that with mutual funds, and perhaps also directly held bonds, in which case selling and moving the cash to local accounts, accepting any local tax hits, may be the best you can do.
Another potentially useful wiki article:I used to hold a US green card, which I gave up this year.
- Permanently leaving the US
In particular, have you made sure that you do not face the US's punitive and execrable 'expatriation tax'? Over a long enough period, this has the capacity to entirely destroy your retirement prospects.
You don't say how long you held the green card for, but based on the numbers you gave you are probably comfortably below its $2M asset trigger, and likely under the annual tax level triggers as well. But since you have been living outside the US but with a green card for three years, you also have to be sure to be fully compliant with each and every stupid US tax rule for non-US residents (easy to slip up when living abroad) to avoid being deemed a 'covered expatriate'.
Statistics: Posted by TedSwippet — Sun Jan 07, 2024 4:25 am — Replies 2 — Views 321