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

Time to Plan for your Children’s Retirements

Retirement planning for ourselves is not always straightforward, so, is planning for the retirements of our offspring something we should be concerned about or is it something they should take care of for themselves?

According to a recent CNBC article, “the idea isn’t so farfetched” and on reflection it is not difficult to understand why.

For start, we really don’t know what the future will hold. For example, in 10, 20 or 30 years what will an IRA, Roth IRA or 401k look like and what will the terms be? Can we be sure our children will be able to access these accounts. And for those with cross-border wealth management concerns, we cannot confidently predict the future of QROPS, SIPPs and other private pensions and pension transfer vehicles. Lastly, and perhaps most importantly, against the background of ageing populations in the west, who knows whether state and federal social security systems will still be viable.

Read More

Time Horizon – An Essential Part of your Retirement Planning

It’s possible that you will never have to make any financial decisions more important than those relating to your retirement plans. These are likely to involve the consideration of a number of important factors, including the following:

  • Your present and future cashflow needs
  • Whether you wish to create a legacy for family or charity
  • Your level of risk-tolerance
  • Whether you wish to simply protect or to grow your wealth
  • An assessment of market conditions
  • Your personal goals
Read More

Select your country

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