Contact

News & Insights

IRAs for US Non-Residents – Dumped by your Custodian?

Leave your IRA if you leave USA

Over the past few years, many firms have all but eliminated their IRA offering to non-residents. Some of the biggest names to have taken this step include the following:

  • Merrill Lynch
  • Morgan Stanley
  • PNC Bank
  • Vanguard
  • Wells Fargo

Even those non-residents who have been able to keep their accounts have found that they face a whole raft of inconveniences and restrictions, including the following:

  • Unrealistic minimum account values
  • Reduced services
  • Inability to access US mutual funds
  • Currency exchange risk

And unless the retirement account exceeds $500,000 many companies do not allow the US non-resident to transfer the account or open a new retirement account. So, many US expats have found their retirement funds are frozen, with investments left unmanaged and no longer working in their favour.

FINRA anticipates change

The Washington-based Financial Industry Regulatory Authority (FINRA) has said that a number of expats have complained about the situation they find themselves in with their IRA accounts and it is hoped that these complaints might lead to change.

“Filing complaints with multiple government and oversight agencies could lead to more visibility on the issue and hopefully change the self-serving way some IRA custodians do business,” said a spokesperson with the organisation.

How can Blacktower in the US help?

Blacktower in the US is a specialist wealth manager. Our aim is to provide our clients with the services and products that best support their long-term financial and retirement goals.

We are concerned that many US non-residents with IRA accounts are being told by their custodians that their accounts are being closed.

However, Blacktower in the US works with a custodian who can accept non-resident so, unlike many independent financial advisors, we are in a position to help with all aspects of retirement planning for non-residents.

Additionally, we can help our clients invest globally and make the most of the many domestic and cross-border opportunities available to them. For more information contact us today.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

The DFM Trend

Even before they disclose their particular circumstances and retirement goals, expats in the United States who are seeking cross-border financial advice bring a whole host of challenges to the wealth manager’s table.

From stringent IRS reporting rules to concerns and confusion over the suitability of various retirement planning vehicles – for example, whether to choose a QROPS, SIPP, IRA, 401(k) or other account – trying to factor in every detail is an enormous responsibility for the 21st century wealth manager. Imagine then trying to juggle such challenges with the day-to-day responsibility of managing portfolios.

Read More

NEWS WRAP – The Coronavirus Markets Bounce Back

Coronavirus has already had a profound impact on the global economy, with both the S&P 500 and the Dow Jones experiencing dramatic falls during the last week of February, leading to concerns that the pandemic could herald unprecedented levels of economic collapse.

However, following a week in which the S&P 500 lost 11.5% of its value and the Dow fell by 3,583 points, the S&P then rose by around 3% and the Dow recovered 750 points. *

To those with historical perspective, these rebounds are not unexpected: figures show that in the three months following a 10% fall, the S&P 500 averages a 5.6% rise, while the Dow exhibits similar ‘bouncebackability’. *

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information: