Expatriation Tax Planning for U.S. Retirees: Filing Obligations, Exit Tax, U.S. Pension and Retirement Income

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A


Conducted on Thursday, July 25, 2019

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will provide tax advisers with a practical guide to the potential benefits and pitfalls of expatriation retirement planning. The panel will offer strategies for minimizing the impact of expatriation taxes, guidance on the effect of leaving the U.S. on Social Security and qualified plan distribution payments, filing requirements, and determining whether to relinquish U.S. citizenship.

Description

Increasingly U.S. citizens are choosing to retire offshore, often for healthcare reasons or to stretch retirement savings in lower-cost jurisdictions. The Social Security Administration recently reported it sends checks to almost 700,000 individuals living outside the U.S. This number does not include those people who retire before Social Security eligibility. Taxpayers contemplating an overseas retirement must weigh several tax and economic factors before deciding.

Because U.S. taxpayers are taxed on worldwide income, leaving the United States does not exempt U.S. citizens from tax filing and payment obligations so long as they maintain citizenship. Taxpayers, including retirees, who choose formal expatriation through renunciation of their citizenship will potentially be subject to the special exit tax regime’s reporting and taxation provisions. Additionally, U.S. taxpayers who move abroad are subject to additional information filing requirements, including FBAR and FATCA filings.

U.S. retirees moving abroad must beware of tax requirements in their destination country. Of specific concern is the resident country's treatment of retirement income from qualified tax-deferred plans. Several countries have treaty provisions designed to minimize or eliminate taxation of retirement distributions, depending on the tax status and situs of the retirement plan. U.S. retirees abroad must also plan carefully to avoid costly tax consequences arising from their resident country's treatment of wealth transfers. In selecting the country to which to move, retirees will want to consider the advantageous tax regime from which they can potentially benefit in certain countries.

Listen as our expert panel provides a practical guide to the tax planning considerations for U.S. citizens planning to retire offshore.

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Outline

  1. Why U.S. taxpayers consider retiring abroad
  2. Incentives offered by some jurisdictions to foreign retirees
    1. Belize
    2. Portugal
    3. Italy
    4. United Kingdom
    5. Switzerland
  3. Filing and withholding obligations for U.S. retirees abroad who maintain U.S. citizenship
  4. Expatriation considerations and exit tax
  5. Identifying potential tax issues in destination countries
    1. Income tax treatment of retirement income from qualified plan distributions
    2. U.S. income tax on Social Security payments
    3. U.S. and resident country tax on income from wages in conjunction with retirement income
    4. Wealth transfer considerations in the destination country
  6. Treatment of investment income
  7. Treatment of earned income, restrictions, and Section 911 Exclusion

Benefits

The panel will review these and other compelling issues:

  • The impact of the expatriation rules on U.S. gift and estate taxes
  • What tax filing preparations should a U.S. retiree make as part of a strategy to retire abroad?
  • Identifying potential pitfalls in the destination country's tax treatment of wealth transfers
  • Foreign treatment of distributions from Social Security and other qualified retirement plans

Faculty

Flott, Stephen
Stephen Flott

Principal
Flott & Co.

Mr. Flott advises businesses, individuals and non-profits on a wide range of international business and tax...  |  Read More

McGlynn, Thomas
Thomas J. McGlynn, Jr., CPA

Tax Managing Director
BDO USA

Mr. McGlynn joined BDO in 2017 with over 25 years in the Big Four where he specialized in expatriate and alien taxation...  |  Read More

Sczudlo, Paul
Paul Sczudlo

Of Counsel
Withers Bergman

Mr. Sczudlo has over 35 years of experience focused on global planning matters. He is widely recognized for his...  |  Read More

Trent, Carole
Carole (Jodi) Trent

Director of Expatriate Services
KBF CPAs

Ms. Trent has 20 years of experience in public accounting and is an active member of the firm’s Family Financial...  |  Read More

Poe, Alex
Alex B. Poe, CPA
Senior Manager
KBF CPAs

Mr. Poe is responsible for the delivery of a full range of global mobility services for multiple clients in a wide...  |  Read More

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