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Old 31.05.2014, 09:28
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Wealth Taxes on Roth IRA

Heard that Switzerland taxes US Roth IRA accounts (balances not contributions) as "wealth" but not traditional IRA's. Doesn't make sense as the taxes are all paid on a Roth IRA up front. This also drives the progressive wealth tax % higher.
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Old 31.05.2014, 09:45
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Re: Wealth Taxes on Roth IRA

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Heard that Switzerland taxes US Roth IRA accounts (balances not contributions) as "wealth" but not traditional IRA's. Doesn't make sense as the taxes are all paid on a Roth IRA up front. This also drives the progressive wealth tax % higher.
Only if you declare them, surely pension assets exempt in any case ?
Wealth tax is fairly insignificant as you can deduct 0.3% for management costs on the first 6 million, this will exceed the wealth tax liability for most people. The 0.3% deduction significantly exceeds my wealth tax liability.
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Old 31.05.2014, 09:48
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Re: Wealth Taxes on Roth IRA

Our Tax Advisor specifically asked us to list all Roth and Traditional IRA accounts (2013) in 2012 they asked only to list if we made contributions. My wife lost her job at AT&T in 1996 - we transferred her pension to a ROTH and paid the taxes up-front over 3 years. We are now told this and our other Roth IRA's that we contributed to in the US years ago are now subject to wealth taxes.
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Old 31.05.2014, 09:51
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Re: Wealth Taxes on Roth IRA

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Our Tax Advisor specifically asked us to list all Roth and Traditional IRA accounts (2013) in 2012 they asked only to list if we made contributions. My wife lost her job at AT&T in 1996 - we transferred her pension to a ROTH and paid the taxes up-front over 3 years. We are now told this and our other Roth IRA's that we contributed to in the US years ago are now subject to wealth taxes.
& a 0.3% deduction that probably exceeds the liability.....
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Old 31.05.2014, 10:00
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Re: Wealth Taxes on Roth IRA

We've gone back and forth with Deloitte - no mention of any 0.3% deduction. We're looking at a very significant tax bill after being told before we came here that Roth IRA's were not subject to wealth tax. This is half of our retirement as most companies dissolved their traditional pensions years ago (my wife rolled her pension and 401K into Roth IRA's). We are way below 6 million but potentially looking at 0.402% wealth tax (2013 and 2012... then this year).

Thanks for your advice - I'll check back with Deloitte (again).
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Old 31.05.2014, 10:02
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Re: Wealth Taxes on Roth IRA

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Heard that Switzerland taxes US Roth IRA accounts (balances not contributions) as "wealth" but not traditional IRA's. Doesn't make sense as the taxes are all paid on a Roth IRA up front. This also drives the progressive wealth tax % higher.
Welcome to the wonderful world of the international taxpayer.

Although it provides relief on the bulk of your tax burden, the Swiss-US treaty on double taxation does not fully eliminate paying taxes to each state on the same money - there will be things on both sides that are viewed differently, and thus taxed differently.

It's part of the cost of being an American abroad.

But as FMF says, the Swiss wealth tax is quite small, insignificant if you can deduct management fees. Depending on your individual situation, you might find other US/Swiss tax pitfalls are more worthy of your attention...
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Old 31.05.2014, 10:13
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Re: Wealth Taxes on Roth IRA

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But as FMF says, the Swiss wealth tax is quite small, insignificant if you can deduct management fees. Depending on your individual situation, you might find other US/Swiss tax pitfalls are more worthy of your attention...
The OP needs to move to ZH, or one of the other 2 low tax cantons, I just looked as BS tax rates for wealth tax, insanely high. So I guess wealthy residents just don't fully report, which is not unheard of in CH.

http://www.steuerverwaltung.bs.ch/17...tar_ab2014.pdf
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Old 26.09.2014, 03:27
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Re: Wealth Taxes on Roth IRA

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Only if you declare them, surely pension assets exempt in any case ?
Wealth tax is fairly insignificant as you can deduct 0.3% for management costs on the first 6 million, this will exceed the wealth tax liability for most people. The 0.3% deduction significantly exceeds my wealth tax liability.
@fatmanfilms

This post is the first I've heard of the .3% deduction. How do you indicate this on the tax return? Its strange since my treuhand never mentioned it. Is it that you can reduce the wealth tax liability by .3% of the amount?

Thanks
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Old 26.09.2014, 06:25
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Re: Wealth Taxes on Roth IRA

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@fatmanfilms

This post is the first I've heard of the .3% deduction. How do you indicate this on the tax return? Its strange since my treuhand never mentioned it. Is it that you can reduce the wealth tax liability by .3% of the amount?

Thanks
On The ZH form under Abzüge item 16.3
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