Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

We are both US and Italian citizens. We are planning to move…

Customer Question
We are both US...

We are both US and Italian citizens. We are planning to move to Italy and become legal residents there (we do not want to renounce our American citizenship) but would like to keep our IRA. Can we maintain the IRA in an American bank and simply pay the RMD every year? Some think you cannot have an investment account if you are not a resident in the US, is that true?

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

He is under the impression that we would have to cash in the IRA to transfer it to our Italian bank and obviously may an enormous tax but he admits he is not an expert. I guess my question is , is it legal to maintain an IRA with a US bank if we are not residents?

Submitted: 2 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 6 minutes by:
3/23/2018
Tax Professional: Tax.appeal.168, Tax Accountant replied 2 months ago
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,711
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
Verified

Hello. Thank you for choosing this Q&A service for assistance. My name is***** will be assisting you. I am prepping my response, which I will provide to you in the next thread(s).

--------------------------------

Note that telephone call and other solicitations are automatically generated by the site and not the experts. If you are not interested, simply decline.

Still typing...

Ask Your Own Tax Question
Tax Professional: Tax.appeal.168, Tax Accountant replied 2 months ago

You do not have to cash in the IRA unless you want to. As a U.S. citizen, you are able to maintain your IRA here in the U.S. SEE BELOW:

--------------------------

If you live abroad as a U.S. citizen, you are still required to file an annual income tax return, and taxes imposed on your IRA distributions will be the same as though you were living in the U.S. That is, distributions from a traditional IRA taken after you reach age 59 1/2 will be taxed as ordinary income, and distributions from a Roth IRA taken after you reach age 59 1/2 with the plan in effect for at least five years will be tax free. With the exception of special circumstances allowed by the IRS, distributions taken before that time from either plan would be subject to taxation and an additional 10 percent penalty on the untaxed portion. The same would apply to someone who qualifies as a non-resident alien and who participated in a U.S. IRA.

REFERENCE SOURCE:

https://finance.zacks.com/happens-united-states-ira-retire-different-country-5750.html

---------------------------------

In closing, my goal is to provide you with the best experience possible! Hopefully, the service that I have provided has earned a 5-star rating! Please remember to rate my service by selecting the 5 stars at the top of the screen before you leave today. Thank you in advance. If you require further assistance, use the reply box and let me know.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Tax.appeal.168 Your Own Question
Tax.appeal.168
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,711
4,711 Satisfied Customers
Experience: 3+ decades of varied tax industry exp. Tax Biz owner

Tax.appeal.168 is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,495 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,272 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
My client is 71 Yrs. old and has a ROTH IRA, if she makes a
My client is 71 Yrs. old and has a ROTH IRA, if she makes a yearly contribution which generates interest (like a Bond) can she have a tax free distribution immediately with out any implementations?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
A ROTH IRA can form a LLC based on federal law. I plan to
A ROTH IRA can form a LLC based on federal law. I plan to file in the State of NevadaCan I as the owner of the ROTH act as “Registered Agent”Can I as the owner of the ROTH serve as a Managing MemberCa… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
I had a ROTH IRA with life settlements (insurance policies)
I had a ROTH IRA with life settlements (insurance policies) as the investment that went into bankruptcy. Because of the bankruptcy, I was forced to make selections I wouldn't have chosen to had it not… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,366 satisfied customers
I inherited a traditional IRA and am I high income
I inherited a traditional IRA and am I high income professional. Do I need to convert this to something else since I earn above the limit for a traditional IRA?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I want to do a ROTH IRA CONVERSION from my TRADITIONAL
I want to do a ROTH IRA CONVERSION from my TRADITIONAL ROLLOVER IRA, I understand the amount that is converted is taxed. I have considered my tax bracket and this will not put in the next one. I expec… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
Are non Roth and Roth IRA contributions reported on your tax
Are non Roth and Roth IRA contributions reported on your tax return? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Does Massachusetts tax Roth IRA distributions if the
Does Massachusetts tax Roth IRA distributions if the contributions were made in NY while a NY resident and withdrawn years later while a Massachusetts resident.… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I accidentally contributed to traditional IRA in addition to
Second opinion] I accidentally contributed to traditional IRA in addition to maxing out 401k. The amount that I contributed to traditional IRA was taxed. What can I do fix this so I don't get taxed wh… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I accidentally contributed to traditional IRA in addition to
I accidentally contributed to traditional IRA in addition to maxing out 401k. The amount that I contributed to traditional IRA was taxed. What can I do fix this so I don't get taxed when I withdraw mo… read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
A taxpayer converts a Traditional IRA to a Roth IRA and
A taxpayer converts a Traditional IRA to a Roth IRA and receives a 1099R for 68,333. Her basis in the Traditional IRA is 58,500. None of the 58,500 was deducted on her return as she participated in a … read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
Turbo tax says that we cant deduct an an traditional ira
turbo tax says that we cant deduct an an traditional ira because we made over 196,000 We didnt make that much. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have a question on back door roth ira. I want to talk to
I have a question on back door roth ira. I want to talk to someone on the phone. But I need that person to be patient.… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Lane, If a tax payer contributed 40,000 to a Roth IRA, and
Lane,If a tax payer contributed 40,000 to a Roth IRA, and did a complete distribution for 50,000 early code J. How much of that is taxable for Massachusetts tax purposes? For Federal 10,000 should be … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
In 2016, I took an early distribution from a traditional IRA
In 2016, I took an early distribution from a traditional IRA (I am 47 years old). I am filling out my 1040 return using tax software, and it has automatically begun filling out Form 5329 and asking me… read more
Tax.appeal.168
Tax.appeal.168
Tax Accountant
4,711 satisfied customers
I converted $10k from my Traditional IRA to a Roth IRA in
I converted $10k from my Traditional IRA to a Roth IRA in December 2017. The goal was to pay taxes up to the 15% bracket. I ended up converting about $3500 too much and now need to recharacterize that… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Question in regards to roth IRA distribution and taxes. Roth
question in regards ***** ***** IRA distribution and taxes. … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,366 satisfied customers
I intended to request a traditional IRA distribution in
I intended to request a traditional IRA distribution in 2017. Unfortunately I miscalculated the date and missed the deadline by 1 day. If I request it tomorrow, the financial institution that holds my… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,238 satisfied customers
Can one take a distribution from a traditional IRA to pay
Can one take a distribution from a traditional IRA to pay for a dependents college tuition without incurring the 10% early withdrawal penalty?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x