Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 03.02.2017, 21:01
Newbie
 
Join Date: Feb 2017
Location: USA
Posts: 2
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
mimu has no particular reputation at present
Choosing US retirement plan when my end goal is to move back to Switzerland

I am a Swiss citizen and have just started my first job in the US. I plan to live here a few years and then eventually move back to Switzerland, where I'll retire around the year 2050. However, although that is still quite far away, I have to already make my selections with respect to my US retirement contributions.
My main objective is to avoid double taxation, and ideally I would of course like to minimize the amount of tax I end up paying (while still being honest). I've found a few helpful resources on this site, such as this thread. However, the posts I found are all from people that already have US retirement accounts and need to move them to Switzerland. I'm somewhat more flexible, in so far as I can currently choose whether I want to make Roth payments or pre-tax payments. I was told by the investment rep that she usually recommends Roth payments in my situation, because (in absence of a tax-treaty) the US imposes a 30% "international tax" on pre-tax IRAs at disbursement (which is higher than my current tax rate). Not knowing whether there will be a tax treaty in effect 35 years from now, that sounds like a good argument. However, if I now invest into a Roth-IRA and then come 2050, Switzerland considers the distribution income, I'll certainly end up paying more taxes (and I guess it would be harder to claim treaty benefits when the two tax payments are so many years apart).

Does anybody have experience with this and some advice on how to proceed? Or, can anybody recommend a Swiss tax person who's familiar with the US-Swiss treaty?
Reply With Quote
Reply

Tags
double taxation, pension advice, retirement, tax advice, tax treaty




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Will I be able to move to Switzerland with my Husband when he retires? Melmouk Introductions 7 08.02.2016 14:33
When is the best time to move to different City/Area in Switzerland heledah Housing in general 3 14.11.2014 18:20
Is getting a PhD worth it if my end goal is in biotech/pharma industry? Vg12th Employment 37 11.07.2014 11:55
New to forum, Switzerland is the goal stepone Introductions 12 25.10.2012 20:29
what to do when I need to move but I did not manage to sell my car yet? Meike074 Leaving Switzerland 9 11.05.2012 14:48


All times are GMT +2. The time now is 04:03.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0