Moving abroad brings with it a long and complicated list of challenges. But financial ones are the most important to get right. What, for example, can an American expat do with their 401(k) retirement plan? Thankfully, there are some options.
The 401(k) is a staple of the average American’s retirement plan. Money set aside under a 401(k) is often tax-deferred, meaning the employee doesn’t have to pay tax on it until years later when their tax rate might be lower. Earnings from investments in a 401(k) account in the form of capital gains are not subject to capital gains taxes either, another enticing advantage of the accounts.