Hello Everyone - I have just joined this forum, seems there are a lot of very knowledgeable people here! ![:happy]( "smile")
I would appreciate some help regarding the impact of my retiring from work in USA ( in 2027, I will be 60) and choosing to live in a country in Western Europe. I have dual citizenship (USA and Romanian, member of EU) and my SO has Swedish citizenship + green card.
My intention is to have several main cash flows:
1. 401K -
2. my Roth IRA
3. my brokerage investments
4. later on - the social security and rental income (potentially)
My intention is to maintain all these accounts in the USA and not move any of them to EU. Even IF I were to consider a repatriation to Romania or establish permanent residency in SWE or FRANCE, I still intend to keep these accounts in USA
Reg 401k: Based on what I read around here, most Western EU countries (perhaps except France) will be looking at any withdrawals from 401K as an income and will be taxed accordingly. US will take their share, too. Eventually there is hope to avoid double taxation and pay a total amount that will reach the highest taxation levels between the 2 countries. For example - if we go to Sweden, this income will be subject to the SWE tax of (let's say) 40% while in USA I will only have to pay approx. 20% (based on the overall income for the year).
Reg. ROTH IRA: I understand that these $$ will be withdrawn tax free from my US and that the EU countries are recognizing this type of account
Reg. Brokerage investments: I have them with SCHWAB - and I read somewhere that SCHWAB is allowing to keep these accounts even in the event of relocation to another country. Here I understand that the main issue is that the risk is driven by the difference in the capital gain tax level (it will be 15% for me in USA) vs. a capital gain tax level of 30% of SWEDEN, let's say.
Reg Social Security or rental income: This is considered as general income and it will be subject to the effective tax level in USA - as well as the tax level in whatever EU country I decide to relocate, correct
I have some flexibility on choosing the future residency place in EU - though I am leaning toward France or Sweden.
The question is - how shall I design the set-up of my cash flows between now and 2027 in order to minimize the impacts of a very high level of taxability in Sweden or France?
Does it make a difference if I drive my application for a new residency in France or Sweden as an US citizen versus an EU-citizen?
I was planning to make some Roth IRA backdoor conversions between 2027 and 2030 - will that require that I maintain an US residency until I am done with these ROTH IRA conversions?
Thank you for your thoughts and advice!
I would appreciate some help regarding the impact of my retiring from work in USA ( in 2027, I will be 60) and choosing to live in a country in Western Europe. I have dual citizenship (USA and Romanian, member of EU) and my SO has Swedish citizenship + green card.
My intention is to have several main cash flows:
1. 401K -
2. my Roth IRA
3. my brokerage investments
4. later on - the social security and rental income (potentially)
My intention is to maintain all these accounts in the USA and not move any of them to EU. Even IF I were to consider a repatriation to Romania or establish permanent residency in SWE or FRANCE, I still intend to keep these accounts in USA
Reg 401k: Based on what I read around here, most Western EU countries (perhaps except France) will be looking at any withdrawals from 401K as an income and will be taxed accordingly. US will take their share, too. Eventually there is hope to avoid double taxation and pay a total amount that will reach the highest taxation levels between the 2 countries. For example - if we go to Sweden, this income will be subject to the SWE tax of (let's say) 40% while in USA I will only have to pay approx. 20% (based on the overall income for the year).
Reg. ROTH IRA: I understand that these $$ will be withdrawn tax free from my US and that the EU countries are recognizing this type of account
Reg. Brokerage investments: I have them with SCHWAB - and I read somewhere that SCHWAB is allowing to keep these accounts even in the event of relocation to another country. Here I understand that the main issue is that the risk is driven by the difference in the capital gain tax level (it will be 15% for me in USA) vs. a capital gain tax level of 30% of SWEDEN, let's say.
Reg Social Security or rental income: This is considered as general income and it will be subject to the effective tax level in USA - as well as the tax level in whatever EU country I decide to relocate, correct
I have some flexibility on choosing the future residency place in EU - though I am leaning toward France or Sweden.
The question is - how shall I design the set-up of my cash flows between now and 2027 in order to minimize the impacts of a very high level of taxability in Sweden or France?
Does it make a difference if I drive my application for a new residency in France or Sweden as an US citizen versus an EU-citizen?
I was planning to make some Roth IRA backdoor conversions between 2027 and 2030 - will that require that I maintain an US residency until I am done with these ROTH IRA conversions?
Thank you for your thoughts and advice!
Statistics: Posted by NickGSO2024 — Wed Jan 10, 2024 1:52 pm — Replies 0 — Views 68