${site.data.firmName}${SEMFirmNameAlt}
Throughout Southern California
310-324-9403
Toll-Free
866-402-1805
View Our Practice Areas

Foreign Retirements Attract FATCA Scrutiny

6a017d3e6b2617970c019aff6f416b970b-320wi.jpgA U.S. tax crackdown is coming for foreign retirement plans. The U.S. has been pushing banks and individuals to report overseas assets, making it tougher to hide money abroad with new rules and penalties rolling out under the 2010 Foreign Account Tax Compliance Act, known as FATCA. The next wave of scrutiny will cover retirement accounts, Bloomberg BNA reported.

Some retirees are happy to grow old in place and in their family homes. Other retirees, however, seek to a change of scenery, exotic climates, and living out their days in foreign countries. Unfortunately, a "foreign" retirement may attract troubling scrutiny from the IRS, and its vice grips are certain to dig deeper with the implementation of FATCA.

According to a recent Bloomberg article titled "Foreign Retirement Plans Seen Scrutinized in U.S. Effort: Taxes," FATCA, or the Foreign Account Tax Compliance Act, is a 2010 law set to crack down on foreign accounts held either intentionally or otherwise to elude U.S. taxation.

While it has been a surprisingly effective initiative, FATCA also has caused some unintentional headaches for some unintentional targets. Banking in various parts of the world has already felt some sting. Foreign banks (notably Swiss banks) have been bogged down with FATCA regulations and some have taken it out on Americans abroad.

If you have been thinking of retiring to foreign shores for some time, then you might be familiar with FATCA. However, as the Bloomberg article notes, the scrutiny attending FATCA is about to reach out into retirement accounts.

Retirement accounts are, generally, designed to be exempt. Nevertheless, the problem is intervening international laws, government-to-government agreements, and ensuring that your foreign retirement does not fall within the sights of FATCA. Instead, you need to ensure that your retirement finds its rightful exemption.

This is a developing issue. If you are or may be affected, then it is essential that you stay informed.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Find Out The Difference That Experience And Expertise Makes

Get the peace of mind that you deserve. First, attend a seminar. This will entitle you to a free initial consultation and a discounted estate planning fee. To learn more about our services or sign up for a seminar, contact us online or call us at 866-402-1805. We have offices in Torrance, Orange, Newport Beach, Pasadena and Woodland Hills.

Questions? Contact Us.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Call Now For A Free Consultation: 866-402-1805
  • ${site.data.firmName}${SEMFirmNameAlt}
  • Main Office: Torrance

    Torrance Office
    990 West 190th Street
    Suite 500
    Torrance, CA 90502

    Toll Free: 866-402-1805
    Map & Directions

    Orange Office
    333 City Boulevard Street
    17th Floor
    Orange, CA 92660

    Toll Free: 866-402-1805
    Map & Directions

    Newport Beach Office
    5000 Birch Street
    Suite 8000
    Newport Beach, CA 92660

    Toll Free: 866-402-1805
    Map & Directions

    Pasadena Office
    790 East Colorado Boulevard
    9th Floor
    Pasadena, CA 91101

    Toll Free: 866-402-1805
    Map & Directions

    Woodland Hills Office
    5850 Canoga Avenue
    4th Floor
    Woodland Hills, CA 91367

    Toll Free: 866-402-1805
    Map & Directions

    Office map