How to Manage 401(k)s, IRAs, and Investments When Your Life Moves Across Countries

Understanding the U.S. Framework That Applies Globally

Regardless of where an individual resides, U.S. tax rules continue to apply.

International relocation does not change any of these obligations.

This means the suitability of your investment structure depends not only on where you are today, but where you may be in the future.

What Happens to a 401(k) When You Move Between Countries

A U.S. 401(k) remains a U.S. account under U.S. law. Moving abroad does not:

• close the account,
• trigger tax,
• trigger penalties,
• affect investment holdings,
• alter plan rules.

However, certain provider policies may affect account functionality.

Potential provider limitations may include:

• restrictions on making investment changes
• reduced online access for certain foreign IP addresses
• limitations for foreign phone numbers
• restrictions on mailing documents
• requests to maintain a U.S. address
• encouragement to roll into an IRA
• “maintenance-only” mode for foreign residents

These are provider-specific, not IRS requirements.

As individuals relocate to new countries, the availability of online access or investor servicing may change depending on the provider’s policies and compliance obligations.

Managing Multiple 401(k)s Across an International Career

It is common for globally mobile individuals to accumulate:

• a 401(k) from a first U.S. employer,
• another 401(k) from a later U.S. employer,
• a 403(b) or 457 plan,
• additional foreign plans after relocating.

As life becomes more international, individuals often evaluate whether to:

• leave each account where it is,
• move assets into a new employer plan (if applicable),
• or consolidate into a Traditional IRA via direct rollovers.

Considerations may include:

• administrative simplicity,
• the number of providers involved,
• provider restrictions on foreign residents,
• diversification options,
• long-term residency,
• fees,
• the need for consistent reporting.

Important neutral point:

Rollover suitability is not automatic and depends on:

• plan features,
• costs,
• investment choice,
• currency needs,
• retirement goals.

Conflict Disclosure:
Skybound Wealth USA may receive advisory fees for managing IRA assets.
Individuals should evaluate all available options before choosing a rollover.

Managing IRAs When Moving Across Borders

Traditional IRAs and Roth IRAs are governed by U.S. rules, regardless of where the account holder resides.

Access considerations:

Some IRA custodians may:

• restrict accounts based on residency
• limit trading functionality
• require U.S. phone numbers
• request U.S. addresses

These are custodian-specific policies.

How Future Residency Affects Today’s U.S. Retirement Accounts

Long-term planning is essential for globally mobile individuals.

Retirement account considerations often depend on:

For example (general themes, not tax advice):

• France, Spain, Italy, Germany
  May tax foreign pension withdrawals; treaties vary.
• UAE, Qatar, Saudi Arabia, Bahrain
  No personal income tax.
• UK, Australia, Canada
  Treaty provisions differ for pensions, dividends, and capital gains.
• Singapore, Hong Kong
  Do not tax most personal investment income.

Understanding future residency helps inform how you invest today.

Contribution Eligibility When Moving Between Countries

Contributions to retirement accounts depend on U.S.-taxable earned income and plan eligibility—not residency.

401(k) contributions

Require W-2 wages and U.S. payroll
Foreign employment generally does not qualify

Traditional IRA contributions

Require U.S.-taxable earned income
FEIE-excluded income generally does not count

Roth IRA contributions

Require U.S.-taxable earned income
Subject to income limits
Residency is not the determining factor

Backdoor Roth

Still requires eligible compensation
Pro-rata rules apply

Contribution eligibility often changes as an individual relocates, especially when switching between:

• foreign employment
• U.S. employment
• self-employment abroad
• living in low-tax vs. high-tax countries
• using FEIE vs. FTC

This makes multi-country planning important.

PFIC Considerations for Globally Mobile U.S. Investors

PFIC rules apply to many foreign-domiciled pooled investment vehicles.

These may include:

• UCITS ETFs in Europe
• OEICs in the UK
• Asian mutual funds
• offshore insurance-linked products
• portfolio bonds holding foreign funds

PFIC implications may include:

• additional tax reporting (Form 8621)
• tax treatment that differs from U.S.-domiciled funds
• administrative complexity

Because globally mobile individuals often open accounts in different countries, PFIC awareness is important.

U.S.-domiciled funds in IRAs, Roth IRAs, and 401(k)s do not have PFIC treatment because they follow U.S. tax rules.

Multi-Currency Considerations When Life Moves Across Borders

Globally mobile individuals may:

• earn in one currency,
• invest in USD,
• save in another currency,
• and retire in yet another.

Key considerations include:

• currency of future retirement spending
• FX exposure within portfolios
• whether to hold multi-currency cash
• currency alignment across different jurisdictions
• future contribution, withdrawal, and repatriation needs

A portfolio structured for someone living in Dubai may differ significantly from a portfolio structured for retirement in Europe or North America.

Currency planning is often an integral part of multi-country financial management.

Managing Brokerage Accounts When Moving Across Borders

Brokerage account access may change as a result of:

• custodian policies
• local regulations
• FATCA compliance
• servicing restrictions for foreign residents

Common considerations include:

Because brokerage access varies globally, individuals often evaluate custodian compatibility with long-term mobility.

U.S. Retirement Accounts and Multiple Relocations

Many individuals move between:

• UAE → UK → U.S. → Europe → Asia
• Canada → U.S. → Middle East → Europe
• North America → Asia → Middle East → U.S.

At each stage, U.S. retirement accounts remain governed by U.S. rules.

Neutral examples:

• Moving to a high-tax jurisdiction
  Local rules may affect pension withdrawals.
• Moving to a treaty country
  Treaty provisions may affect taxation.
• Moving to a no-tax jurisdiction
  FEIE may be relevant for earned income.
• Moving back to the U.S.
  U.S. tax rules apply across all accounts.

Understanding how each move affects multiple income types is part of long-term planning.

Hypothetical Examples (Illustrative Only)

The following examples do not represent actual clients.

Example 1 - The Globally Mobile Professional

• Works in the U.S., then Europe, then UAE
• Accumulates two 401(k)s and one IRA
• Uses U.S.-domiciled portfolios to maintain reporting consistency
• Reviews rollover suitability depending on plan benefits

Example 2 - The Returning Expat

• Returns to U.S. after 10 years abroad
• Uses FEIE abroad, now evaluates IRA eligibility
• Reviews currency allocations for retirement in U.S.

Example 3 - The Multi-Country Investor

• Lives in Asia, then relocates to the Middle East
• Has investments in both U.S. and foreign accounts
• Evaluates PFIC exposure when using local platforms

Example 4 - The Cross-Border Entrepreneur

• Owns business structures in two jurisdictions
• Has self-employment income
• Reviews SEP IRA or Solo 401(k) suitability
• Reviews FEIE interactions carefully

Practical Checklist for Globally Mobile Americans

How Skybound Wealth USA Supports Individuals

Skybound Wealth USA assists individuals with:

• evaluating 401(k), IRA, and Roth IRA considerations across relocations,
• understanding how FEIE and FTC interact with contribution eligibility,
• identifying U.S.-domiciled investment options,
• PFIC-aware investment structuring,
• cross-border retirement planning,
• multi-currency analysis,
• rollover assessments aligned with ADV disclosures,
• planning across multiple future residency scenarios,
• long-term modelling using MoneyMap.

Conflict Disclosure:
Skybound WealthUSA may receive compensation when assets are managed under advisory programs. Individuals should evaluate all options before making decisions.

Next Steps

If you would like help understanding how to structure 401(k)s, IRAs, and investment accounts across international moves, you may schedule a discussion with Skybound Wealth USA.