Posts under the Citizens and Residents category.

IRA Contributions and Deduction

An individual Retirement account (IRA) provides certain tax advantages. Anyone who wants to save for retirement can set one up. Traditional IRA contributions are tax deductible for the year when you make the contribution, and withdrawals in retirement are taxed at ordinary income rate. Roth IRAs provide no tax break for contributions, but earnings and withdrawals are generally tax-free. Continue Reading »

What Happens to Your Retirement Plans and IRAs when You Relinquish US citizenship or abandon your green card?

The U.S. is the only country in the world which levies taxes on the basis of citizenship rather than residency—meaning people can be liable to the IRS without ever having lived in the country, if they hold a U.S. passport or green card. AU.S. citizen or a long-term resident can permanently disconnect from future tax obligations by relinquishing their U.S. Continue Reading »