In Part 1 of this podcast, we discussed figuring out your "why", for wanting to retire abroad, the residency/visa requirements, and the practical aspects of moving overseas. 

In Part 2 of this episode, we answer specific tax and financial questions. Some examples of the questions (amongst others) that we answer here are: -

• Do I still need to file U.S. taxes when overseas, and what does that entail? What about State taxes?

• How do I access my retirement income from overseas? How do I get my RMDs?

• Will my custodian allow a foreign address? How do I transfer my funds from the U.S.?

• Should I roll over my 401k to a rollover IRA before I leave the U.S.?

• Will I have enough SS credits to claim social security from abroad?

• Should I buy a home overseas?

• What about healthcare expenses? How do I deal with that?

• Are there other countries you should consider besides the usual?

We discuss the FBAR (Foreign Bank Account Report) and why it is important to be aware of it.

It's a FORM that needs to be filed under the Bank Secrecy Act if you have a financial interest or signatory authority over a foreign financial account.

And the aggregate value of these accounts exceeds $10,000 at any time during the reporting year. The FBAR filing requirement applies to all types of financial accounts, not just bank accounts. 

Failure to file the FBAR can result in substantial penalties. 


Episode Links & Resources

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

In this episode, we discuss PFICs (Passive Foreign Investment Companies) and the dangers of investing in them.

We start by defining them with some examples and then discuss the tax compliance requirements and the potential penalties for non-compliance. We include financial planning considerations like foreign exchange and repatriation. 

We explain why we want to get a detailed idea of any PFICs clients may have when we start working with them on financial planning or tax preparation.

Most of our clients /prospects are not aware that they have PFICs in their overseas portfolio.

We discuss ways of dealing with them, how to stay compliant or get rid of them, and also mention the particular case of those with work visas - who may want to keep the PFICs in their portfolio. 

It's a fun discussion.