Our 401(k) rollover service specialises in assisting American expats in transitioning their retirement savings to a range of options, including:
Whether you have a 401(k) from a previous employer or a current workplace retirement plan, our experts provide cross-border advice and personalised solutions to maximise your retirement income. Discover your 401(k) rollover options now with a complimentary review.
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A 401(k) rollover allows you to consolidate your pension account into one, cost-effective, easy-to-manage IRA account. This can save you on various amounts of fees and simplify account management.
401(k) accounts may have limited investment choices, typically restricted to the mutual funds offered by your account provider. With an IRA, you can invest just about anywhere, providing a more comprehensive range of investment choices and the ability to further diversify your portfolio.
Transferring money from a 401(k) to an IRA can be done without paying taxes. This allows the pot to grow as much as possible with no tax being payable until you start to make withdrawals.
Many 401(k) participants pay an average all-in fee of 2.22% of their assets. However, if you engage a professional to manage your IRA, you may incur an advisory fee which could be more than internal fund fees and administration charges.
401(k) accounts are often restricted and rigid, and the providers do not often offer financial advice. With an IRA, you have the ability to access ongoing advice to help you plan for your retirement.
A 401(k) rollover to an IRA opens the option of switching to a Roth Account. A Roth IRA can be beneficial for tax planning now or in the future, as you do not pay tax when you withdraw.
Within an IRA account, as an American expat, you may be able to invest in a currency relevant to your place of stay or place of retirement.
Upon your death, your 401(k) will likely be paid out in one lump sum to your beneficiary, which could cause income and inheritance tax issues. However, IRAs have many more payout options upon death, potentially saving taxes for your beneficiaries.
Our financial advisory firm specialises in serving American expats. We hold multi-regulatory licences and are experts in cross-border advice, understanding the unique financial challenges you face living abroad. We offer tailored advice to help you navigate these complexities and manage your retirement savings effectively.
We provide expert guidance on 401(k) rollovers, helping you understand the benefits, process, and potential tax implications. Our goal is to help you make informed decisions about your retirement savings.
We don’t believe in one-size-fits-all solutions. We take the time to understand your individual financial situation, retirement goals, and lifestyle plans to provide personalised retirement planning advice.
We offer free, no-obligation consultations. We believe in transparency and aim to provide you with clear, straightforward advice, allowing you to make the best decisions for your financial future.
Management: Managing a 401(k) from overseas can be challenging due to time zone differences and potential communication barriers with the account provider.
Management: With a rollover into an IRA, you can manage your retirement savings more easily from anywhere in the world. Our financial advisory firm specialises in assisting expats, providing personalised advice to help you manage and optimise your account.
Investment Options: 401(k) plans often have limited investment options, typically restricted to the mutual funds offered by the plan provider.
Investment Options: An IRA typically offers a wider range of investment options, allowing you to diversify your portfolio and potentially navigate market fluctuations better.
Fees: 401(k) plans can have high fees, which can eat into your retirement savings over time.
Fees: IRAs often have lower fees than 401(k) plans, helping you save more for your retirement.
Penalties: If your US firm discovers you’ve relocated overseas, you may face a tight 60-day window to find a solution for your investments before incurring a 10% charge on the entire account, along with Capital Gains Tax.
Penalties: With careful planning and advice, a rollover can be done in a way that avoids early withdrawal penalties.
Tax Implications: Withdrawals before the age of 59.5 are typically subject to a 10% early withdrawal penalty in addition to regular income tax.
Tax Implications: Rollovers can be done in a way that maintains the tax-deferred status of your retirement savings. Plus, with an IRA, you have the option to convert to a Roth IRA, where withdrawals in retirement can be tax-free.
Book a free, no-obligation 15-minute call with one of our 401(k) rollover experts. They will explain the benefits of a 401(k) rollover, discuss the possible options for you, and outline the pros and cons of the rollover process.
On your behalf, we will contact your 401(k) plan provider and gather all of the information specific to your 401(k).
Once we receive information specific to your 401(k), we will discuss your financial situation and personal objectives for retirement. To do this, we will:
We will provide you with a free 401(k) rollover assessment report that considers all the information from your 401(k) and current situation. The report will include:
If a rollover is recommended, and you accept our recommendations, we will manage all aspects of the rollover for you. If not, you walk away without paying a dollar.
Speak with one of our experts during a complimentary 15-minute call, and you’ll:
Yes, you can continue to contribute to your 401(k) while living abroad, as long as you are still employed by the company that sponsors the 401(k) plan. However, if you are earning income in a foreign country and claiming the Foreign Earned Income Exclusion, that excluded income cannot be contributed to a 401(k).
A 401(k) rollover for an American expat works similarly to a rollover for a resident. You can roll over your 401(k) into an Individual Retirement Account (IRA) without incurring taxes or penalties. This can provide you with more investment options and potentially lower fees. Our financial advisory firm can guide you through the process, and provide ongoing advice.
Withdrawals from a 401(k) are generally subject to U.S. income tax, regardless of where you live. Additionally, if you make a withdrawal before age 59½, you may also be subject to a 10% early withdrawal penalty. However, the tax treaty between the U.S. and your country of residence may affect how your withdrawal is taxed.
No, U.S. citizens are taxed on their worldwide income, regardless of where they live. This includes distributions from a 401(k). However, the tax treaty between the U.S. and your country of residence may provide some relief from double taxation.
If you retire abroad, you can leave your 401(k) in the U.S. and take distributions from it. These distributions will generally be subject to U.S. income tax. Alternatively, you could consider rolling over your 401(k) into an IRA, which may provide more flexibility and investment options. It’s important to consult with a financial adviser to understand the best option for your specific situation.
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