Well Vanguard does not let you open a Roth IRA if you are living outside of the US or working outside the US for more than half t of the year, and Fidelity does not allow you to open an account if you are living outside of the US
Awesome video! Thank you so much. We are moving to Portugal from Washington DC. We will be working for our own company for customers in America in Portugal.
ROTH IRA question, please! If you are a more "normal waged" worker in say Japan or China, making around 50,000 USD a year, the only way to contribute to a Roth IRA would be through foreign tax credits, right? 50K gross in China would likely come out to about 5,500 or 6,000 USD in total taxes paid to the Chinese government, I believe. 50,000 USD of earned income in the US would make me liable for about 6,300 USD of federal income tax, right? So would I owe the US government about 300-600 USD after my foreign tax credit? Then, I would legally be allowed to contribute the full 7,000 to my Roth IRA? If not, maybe just taking the FEIE would be better? Then I could contribute to a normal brokerage account and just buy and hold. Hoping to put in about 15K a year into a brokerage account and save another 9/10K cash due to the lower cost of living in Asia.
Well Vanguard does not let you open a Roth IRA if you are living outside of the US or working outside the US for more than half t of the year, and Fidelity does not allow you to open an account if you are living outside of the US
Awesome video! Thank you so much. We are moving to Portugal from Washington DC. We will be working for our own company for customers in America in Portugal.
ROTH IRA question, please!
If you are a more "normal waged" worker in say Japan or China, making around 50,000 USD a year, the only way to contribute to a Roth IRA would be through foreign tax credits, right?
50K gross in China would likely come out to about 5,500 or 6,000 USD in total taxes paid to the Chinese government, I believe. 50,000 USD of earned income in the US would make me liable for about 6,300 USD of federal income tax, right? So would I owe the US government about 300-600 USD after my foreign tax credit? Then, I would legally be allowed to contribute the full 7,000 to my Roth IRA?
If not, maybe just taking the FEIE would be better? Then I could contribute to a normal brokerage account and just buy and hold. Hoping to put in about 15K a year into a brokerage account and save another 9/10K cash due to the lower cost of living in Asia.
Great video and clarify the myth about expat ira/roth contribution! Thank you .
Glad we were able to help dispel some of the less-than-accurate information out there on this topic!
Living in the Philippines, married to foreign spouse (not American). making 18k-25k annually. What are my rules and limits?