Page 1 of 2 12 LastLast
Results 1 to 10 of 29

Thread: Question for Americans: 401k, IRA, 529s??

Hybrid View

Previous Post Previous Post   Next Post Next Post
  1. #1
    Join Date
    Jun 2011
    Location
    New Zealand
    Posts
    195

    Default Question for Americans: 401k, IRA, 529s??

    We are looking over options, but it’s not easy getting an accurate answer. For any Americans who have, or plan to move to New Zealand, what are you doing with your 401k, IRA, (both retirement) or child’s 529 (education) plans?

    Also, does your credit score/rating from the US follow you to NZ?

    Thanks!

  2. #2
    Join Date
    Apr 2009
    Location
    Sandwich Islands
    Posts
    758

    Default

    Quote Originally Posted by ScottNZ View Post
    We are looking over options, but it’s not easy getting an accurate answer. For any Americans who have, or plan to move to New Zealand, what are you doing with your 401k, IRA, (both retirement) or child’s 529 (education) plans?

    Also, does your credit score/rating from the US follow you to NZ?

    Thanks!
    I've just left the 401ks and IRAs where they are; If you're not making any US income, slowly moving everything into a Roth might make sense. (Pay taxes on the money now at a lower rate so you can withdraw taxfree at retirement.) We don't have a 529, so I can't comment on that.

    PS: Assuming you will be receiving Medicare or another government pension, you will not be eligible for a NZ pension.

    Please note: I have no financial training, and am very good at losing money.

  3. #3
    Join Date
    Jan 2007
    Location
    Chch, NZ
    Posts
    2,226

    Default

    Also, does your credit score/rating from the US follow you to NZ?
    No in terms of opening a bank account or asking for a loan. I don't even think kiwis know what a FICA score is.

  4. #4
    Join Date
    Oct 2007
    Location
    Christchurch
    Posts
    384

    Default

    Unless accumulated as part of an employee plan, your 401k, IRA and 529 gains are all considered taxable income by the IRD. That is, once your four-year grace period has run it's course. If you have significant money in these plans, it would probably be prudent to seek professional tax advice. (The treatment of overseas investment holdings by the IRD is draconian and extremely frustrating...)

  5. #5
    Join Date
    Jun 2008
    Location
    UK to USA to Waikato, NZ
    Posts
    1,383

    Default

    Quote Originally Posted by Bozeman View Post
    Unless accumulated as part of an employee plan, your 401k, IRA and 529 gains are all considered taxable income by the IRD. That is, once your four-year grace period has run it's course. If you have significant money in these plans, it would probably be prudent to seek professional tax advice. (The treatment of overseas investment holdings by the IRD is draconian and extremely frustrating...)
    Hi,
    What is the 4 yr grace period?

    We have some money in 401 k's, IRA and a 529. I know we can use money in education fund at certain colleges in NZ but it sounds like they may tax you on the others after 4 years of moving to NZ??


  6. #6
    Join Date
    Feb 2008
    Posts
    37,909

    Default

    Here's the word on the four-year tax break. http://www.ird.govt.nz/yoursituation...reign-inc.html

  7. #7
    Join Date
    Oct 2018
    Location
    New Zealand
    Posts
    1

    Default

    Hello Bozeman,
    I am interested in your comment where you say "Unless accumulated as part of an employment plan, your 401k, IRA and 529 gains
    are all considered taxable income by the IRD. My retired NZ resident American partner has an IRA which was born out of an employer subsidized 401k. Does this mean that her IRA gains will not be considered taxable income by the IRD? Can you suggest where we could go
    or look to get further information?

  8. #8
    Manks's Avatar
    Manks is offline Serial procrastinator and general busybody
    Join Date
    Aug 2009
    Location
    UK->CT, USA->Wellington, NZ
    Posts
    1,853

    Default

    The four year tax break for new immigrants means you don't have to pay tax on income in other countries. For us, this means we don't have to declare the rental income from our house in the UK for four years. Although we're trying to sell it so we won't even get close to that deadline.

  9. #9
    Join Date
    Jul 2011
    Location
    NOYB
    Posts
    17

    Default

    Quote Originally Posted by ScottNZ View Post
    For any Americans who have, or plan to move to New Zealand, what are you doing with your 401k, IRA, (both retirement) or child’s 529 (education) plans?
    I am moving to NZ in Sept of this year. I already pulled all of my money out of the big casino prison called Wall Street.

    401K, IRA, and 529 are schemes to take money away from the general population to make the bankers even more money. These programs limit your access to YOUR money (which it really isn't your money if you don't have control over it, now is it?).

    I'm happy to read that you are questioning what to do with these schemes. You can find many web sites and books describing how 401K's and IRA's are scams (401k hoax is an interesting read).

    Good luck with your move to NZ and your financial queries.

  10. #10
    Join Date
    Oct 2007
    Location
    Christchurch
    Posts
    384

    Default

    Quote Originally Posted by Conzar View Post
    I am moving to NZ in Sept of this year. I already pulled all of my money out of the big casino prison called Wall Street.

    401K, IRA, and 529 are schemes to take money away from the general population to make the bankers even more money. These programs limit your access to YOUR money (which it really isn't your money if you don't have control over it, now is it?).

    I'm happy to read that you are questioning what to do with these schemes. You can find many web sites and books describing how 401K's and IRA's are scams (401k hoax is an interesting read).

    Good luck with your move to NZ and your financial queries.
    Wow. I take it that you like to maximize your tax bill.

Page 1 of 2 12 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •