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  • Artisis
  • Veteran

    • 233

    • August 21, 2013, 04:52:28 pm
    • South Korea
Wanting to open an IRA.....who do I talk to?
« on: August 04, 2014, 01:11:19 pm »
I am planning visiting my family this August and while I am home, I want to open up a Roth IRA account but I am unsure who to talk to about it.

I am assuming if I go into Citibank (or any bank), they will only mention their products in hopes of making more money from me. I will admit, I truly do not know what I am doing, so I would want to speak with a neutral investment specialist (even if that means paying a fee).

Where can I go to get this service?


Re: Wanting to open an IRA.....who do I talk to?
« Reply #1 on: August 04, 2014, 02:38:51 pm »
Opinion from a former US Bank wealth management adviser intern and finance major,
You can a create a Roth account online overseas, or visit a bank while youíre in the US. 

You don't need a financial adviser. Itís a waste of money.  The only time you should consult a financial adviser is when you are about to retire. Tax and withdrawal issues can become very complicated when you enter your retirement age.
You can have more than one Roth IRA from different financial institutions or personal accounts, but the total amount you can contribute is currently$5,500.00 per year. Check the deadline on irs.gov or google search it...

Choosing investments can be quite scary due to the finance jargon and limitless choices. You should only be concerned with these terms: expense ratio, volatility, diversification, mutual funds, index funds, government bonds, and corporate bonds .. Learn about these terms and their differences from YouTube. It will take not more than an hour of your time and is well worth it. And just forget about annuities. You never get as much out of it as you invest into itÖ

Or you could just create an Vanguard.com account, open an IRA online, and invest in VBINX (vanguard balanced index fund).. This fund has low expenses and is well diversified.


  • klv_tx
  • Waygookin

    • 18

    • October 31, 2012, 02:27:34 pm
Re: Wanting to open an IRA.....who do I talk to?
« Reply #2 on: August 04, 2014, 03:29:44 pm »
Advice on opening an IRA account as an American:

I had tax problems after I opened an IRA account and began contributing because all of my income is considered "foreign income" and is not taxed by the US government. If you open the account, you will pay taxes on the money you add to the account. It's not a huge amount but make sure you are aware of the tax implications. You might look into some other investment options other than an IRA account.


Re: Wanting to open an IRA.....who do I talk to?
« Reply #3 on: August 05, 2014, 12:52:21 pm »
Advice on opening an IRA account as an American:

I had tax problems after I opened an IRA account and began contributing because all of my income is considered "foreign income" and is not taxed by the US government. If you open the account, you will pay taxes on the money you add to the account. It's not a huge amount but make sure you are aware of the tax implications. You might look into some other investment options other than an IRA account.

That is a very good point. Overseas income claimed under the foreign income exemption tax isn't consider (USA) earned income ><... May I ask how much of a tax was it? Or did you have to pay a 6% penalty on your ROTH contributions for that year..


  • klv_tx
  • Waygookin

    • 18

    • October 31, 2012, 02:27:34 pm
Re: Wanting to open an IRA.....who do I talk to?
« Reply #4 on: August 05, 2014, 12:57:36 pm »
I believe it was a 6% penalty. Like I said, it's not a huge amount, but it might be more worthwhile to look into other options.


Re: Wanting to open an IRA.....who do I talk to?
« Reply #5 on: August 05, 2014, 01:29:21 pm »
Just for my pure hate of  IRS rules, here's what you may be able to do so you can get your ROTH contributions overseas:

FEIE=foreign earned income exclusion
"Yes, you need to change your FEIE to include sufficient income for
the IRA contribution. Start at the end of Form 2555 and work backwards
to determine how many days of physical presence in the current tax
year you need. To do this, take the maximum exclusion / target
exclusion = fraction, then fraction x number of days in the current
tax year (always round down). Here's an example. Say you earned
$50,000 and need $5,000 for your IRA contribution. In this case, you
only want to exclude $45,000 and leave $5,000 non-excluded. Assume the
maximum FEIE is $95,100, 0.473 x 366 = 173 are the days of physical
presence you want in the current tax year. For 2012, the period
between July 12 - Dec 31 would be 173 days (assuming you did not spend
any time in the US during that time), so your 12 month period in this
case could be July 12, 2012 through July 11, 2013. Your total
exclusion would be $44,952, leaving $5,048 exposed to tax (and
available for an IRA contribution) and then your standard deduction
and person exemption will wipe that out, so your tax remains zero."

http://www.bankrate.com/finance/taxes/working-abroad-and-investing-in-a-roth-ira.aspx


  • popeye2u
  • Expert Waygook

    • 875

    • April 05, 2011, 09:45:37 am
    • S of N. Korea
Re: Wanting to open an IRA.....who do I talk to?
« Reply #6 on: October 14, 2014, 01:21:51 pm »
That gave me a headache :huh:
Illegally Screwed By Employers in Korea:  https://www.facebook.com/groups/1628928127347749/


Re: Wanting to open an IRA.....who do I talk to?
« Reply #7 on: October 14, 2014, 02:09:05 pm »
Do you have an account in the USA?  Use those funds and open one up through Vanguard.