N@N

I'm in my 50s and am planning for early retirement abroad - how do I reduce my taxes on the $9 million in my retirement accounts?

The article discusses strategies for a person in their 50s planning for early retirement abroad to minimize taxes on their $9 million in retirement accounts. Key points include understanding the tax implications of different retirement accounts like Traditional IRAs, Roth IRAs, and 401(k)s. For Traditional IRAs and 401(k)s, withdrawals are taxed as ordinary income, whereas Roth IRAs offer tax-free qualified withdrawals. The article suggests considering moving to a country with a favorable tax treaty with the U.S., like Panama or Portugal, which could reduce or eliminate U.S. taxes on retirement income. It also mentions the Foreign Earned Income Exclusion (FEIE) which might not apply to retirement income but could benefit other income sources. Other strategies include converting Traditional IRA funds to a Roth IRA before moving abroad to pay taxes at potentially lower rates, and exploring countries with no income tax or special tax regimes for retirees. The article emphasizes the importance of consulting with a tax advisor familiar with both U.S. and foreign tax laws to navigate these complex issues effectively.

Read the Full 24/7 Wall St Article at:
[ https://247wallst.com/personal-finance/2024/12/01/im-in-my-50s-and-am-planning-for-early-retirement-abroad-how-do-i-reduce-my-taxes-on-the-9-million-in-my-retirement-accounts/ ]