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I am a US citizen temporarily living abroad. Eventually, I will end up permanently in the US. But while I'm residing out of the country, several of my mutual fund families where I have IRAs have refused to let me make trades. This is a serious problem (that I didn't anticipate when I left the states), as I have a lot of my net worth tied up in IRAs. I can't afford to let it stagnate. With lots of people flitting about the globe to work these days, someone must have faced this problem before. Anyone have a solution or idea?
Thanks
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I have been living out of the US for 3 years now. To be able to trade (in or out of a IRA or brokerage account), all you have to do is have a mailing address in the states. By having a "MAILING ADDRESS" in the states your mutual fund companies or brokerages will not know the difference. As for US taxes, you will still have to claim all capital gains, but you will have to fill out a form 2555ez to get your $72,000 deduction for being out of the country. If you don't itemize then you will get the standard deduction on top of the foreign income allowance ($72,000 for 1998).
My income went over the 72,000 and I had a lot of capital gains for the year 1998. But after having H&R block do my taxes, ALL the gains and the overage was washed out and I did not owe anything to the IRS.
REMEMBER....to claim the foreign income allowance you must past the tests of being a out of country resident. (see form 2555ez for the questions). you must not be out of the US less than 330 days of a 12 month year (that does not necessarily mean Jan1 98 to Dec31 98.).
I hope this helps you.
glhoss
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Thanks for the quick response. I have my primary address listed in the states (a relative), the secondary address is the foreign one. The problem arose when I asked for forms for an IRA asset management account to be sent to my foreign address. They said no way, and seemed to imply that my accounts would be frozen; i.e. no more trading in new mutual funds (I can still buy ones that I currently own). Should I just ask them to drop the secondary foreign address from their records? My relatives aren't that reliable in forwarding stuff to me. Should I rent a Mailbox Etc P.O. Box and have them forward it to me? (I don't know if they'll do this) I'm also considering opening a new account (with only a states address) and transferring all my IRA funds to it.
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Your best bet is to have the mailing address in the states and have someone you can trust check your mail and forward it to you......the Post Office Box thing will not work. That is the only way.....
hope this helps
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