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

  1. #1
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    Default Question for Americans: 401k, IRA, 529s??

    We are looking over options, but itís 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 childís 529 (education) plans?

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

    Thanks!

  2. #2
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    Quote Originally Posted by ScottNZ View Post
    We are looking over options, but itís 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 childís 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
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    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.

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    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...)

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

  7. #7
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    Manks is offline Serial procrastinator and general busybody
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    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.

  8. #8
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    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 childís 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.

  9. #9
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    Hello and welcome.

  10. #10
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    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.

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