So when the bankrupt US government confiscates your 401K, you’ll be happier you are forced to lead a simpler life
>>So when the bankrupt US government confiscates your 401K, you’ll be happier you are forced to lead a simpler life<<
That is a concern but a highly unlikely one.
Sine their 401(k) is basically the primary instrument for most people’s retirement, you would be putting basically ALL retirees into the poor house. That would cause a run on SS as most like me would have to pull that trigger much earlier than originally planned.
My current plan makes me self-sufficient at 62 without using SS (which I will defer to 70. Why/how could the government take that away and then have to pay for me?
I don’t see it.
I know several US Expats here that exist off of their Social Security and nothing else. I just shake my head at their lack of planning.
As far as the 401K, that is a topic upon itself. What I had to do was convert it to an IRA, when I did a 401K distribution they took 20% taxes, which led to IRS complications. However, you cannot open an IRA if you are outside the US, but you can if you make a quick trip back to the USA.
Furthermore, again if you plan right, you convert your 401K and/or traditional IRA to a Roth and because of decreased income you end up with little or no income tax due.
And another little tidbit, SS and Military Retirement are not considered wages and therefore cannot be put into an IRA. (yes there are always workarounds)