Moving abroad - 401k?

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oradnos

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oradnos
Feb 6 21 Comments

Moving to Europe and not planning on returning to the US. What to do with a 401k? Has anyone been in this situation?

My 401k is with fidelity so was thinking of opening an IRA and doing a rollover. Will invest in some stocks with the amount. But have a brokerage account with Merrill. Would it be better to open the IRA with them?

Any advice greatly appreciated

Also when I move abroad I would be nonresident for tax purposes — am on h1b here in the US.

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  • Google / Eng
    seacar

    Go to company page Google Eng

     seacar
    I'd roll everything into a traditional IRA, then slowly roll 40k into a Roth IRA every year. That way you'll only pay a 12% income tax on the money. You can withdraw it after you're 60 IIUC
    Feb 6 16
    • Google
      wut22

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      wut22
      Ah you are right. I was thinking about US citizens and not residents.
      Feb 7
    • Apple
      jmCY85

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      jmCY85
      So here’s the rub. The country where you’re moving may actually view the Roth account as a taxable account in their jurisdiction. So, any transactions in that Roth that generate capital gains may get taxed even through they’re not taxed in US. Make sure you check with a qualified accountant before making any decisions.
      Feb 7
  • Visa
    oradnos

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    oradnos
    OP
    Also when I move abroad I would be nonresident — am on h1b here in the US. Added to the post
    Feb 6 3
    • Visa
      dsswe

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      dsswe
      Good point, thank you. Do you know if there would be any implications (fees, tax, etc.) from keeping them? Esp. Bank account and brokerage account. And trading / buying with brokerage account would be no issue if nonresident alien?
      Feb 6
    • Google / Eng
      seacar

      Go to company page Google Eng

       seacar
      Vanguard doesn't charge any maintenance fees. Not sure for other providers. For a bank account, open one at a local credit union. There are generally no fees. For a brokerage, use IB.
      Feb 7