Search found 5 matches

by bbroka
Fri Oct 24, 2014 12:06 pm
Forum: Non-US Investing
Topic: Estonian citizen - 401K worth it?
Replies: 8
Views: 1302

Re: Estonian citizen - 401K worth it?

I just called Vanguard again and they said that as long as we have a US address - while we're still in the US - we could roll over the 401K. Once we've left and no longer reside in the US, we can't do anything new, but we can keep the rollover. So that's a plus! I also pushed again on the whole question of if we can open a regular (not rollover) account with them, and this rep said yes - as long as we're physically residing in the US and have a US address??!! Depending on who you talk to, you get a different answer I guess. He said to just open the account online and indicate our US address. So what do we do? Options: Keep the 401K and, once leaving the job, roll over into Vanguard Close the 401K, open a separate Vanguard account (if it wor...
by bbroka
Fri Oct 24, 2014 11:45 am
Forum: Non-US Investing
Topic: Estonian citizen - 401K worth it?
Replies: 8
Views: 1302

Re: Estonian citizen - 401K worth it?

This won't help with your question, but just to clarify, Vanguard allows you to invest as long as you're a "resident alien for tax purposes" -- see http://www.irs.gov/Individuals/International-Taxpayers/Determining-Alien-Tax-Status . You're a resident alien for tax purposes if you meet either the green card or substantial presence test. You're not a permanent resident but you most likely meet the substantial presence test. Estonia's tax treaty with the US may provide for an extension of non-resident alien status in spite of that. In my case, it was 5 years. In any case, you don't need to have permanent residency in order to invest in US Vanguard funds. You can be on a temporary work visa and yet qualify as a 'resident alien' for ...
by bbroka
Fri Oct 24, 2014 11:44 am
Forum: Non-US Investing
Topic: Estonian citizen - 401K worth it?
Replies: 8
Views: 1302

Re: Estonian citizen - 401K worth it?

If you stay in the US and retire there, then opening a 401k will have been the right decision. If you move out, it quite probably won't. I have an old 401k that is 'trapped' in the US now that I no longer work or live there. So far it has only provided a modicum of hassle, such as a W-8BEN requirement every couple of years... ...but I can see several looming dangers that may, or may not come to pass. Thanks to overbearing US regulations, an increasing number of US brokers are unwilling to manage accounts at all for people not resident in the US (most recently, Fidelity). The US regularly breaks its international tax treaty agreements, by overriding them with domestic laws (for example HEART, FATCA). 401ks and IRAs can be destroyed by the U...
by bbroka
Fri Oct 24, 2014 11:40 am
Forum: Non-US Investing
Topic: Estonian citizen - 401K worth it?
Replies: 8
Views: 1302

Re: Estonian citizen - 401K worth it?

HurdyGurdy wrote:Hello bbroka,
welcome.
Are your sure about those 2.73% - 3.3% VOYA retirement plan annual fees?
I really hope you missed a zero there. :shock:
If these are really the fees, it may not be worth.

Would the tax treaty let you use a Roth IRA?

Perhaps you could add a page for Estonia! http://www.bogleheads.org/wiki/EU_investing
Thanks! The tax treaty is silent about Roth IRAs, only confirming that no double taxation is allowed. So I assume it's possible!
I checked the fees again, and yep - this is the annual fee range...
by bbroka
Thu Oct 16, 2014 9:46 pm
Forum: Non-US Investing
Topic: Estonian citizen - 401K worth it?
Replies: 8
Views: 1302

Estonian citizen - 401K worth it?

Hello, I'm new here and would appreciate everyone's advice to a tricky question. I'm from Europe, and a total dummy when it comes to investing in the US. My husband and I are in the US on a temporary work visa with no clear idea about where we're going to retire. My husband was just offered to join a 401K through the company he works at, with no match from employer and what looks like a pretty expensive plan (VOYA retirement plan annual fees ranging 2.73% - 3.3%?). We're trying to decide if it's worth it. I guess the PROs would be that: - we're saving pretax money, even if without company match - who knows - if we're stuck in the US in the long term - it's a start for future investments - we're unable to invest in Vanguard because they don'...