U.S. Connected Persons & Expats
Navigating the complexities of investing for US Expats
It can be a surprise to discover you may be a US connected person. US expats in particular face greater financial obstacles that other nationalities, and not having a US passport doesn't mean that you don't have tax obligations there, even if you haven't lived there for many years.
Restrictions on compliant investments and financial institutions for US connected persons are increasing. Global regimes of information sharing between nations means it's never been more important to seek advice to avoid potentially severe tax implications.
If you have ever lived or worked in the US it's possible you have accrued assets within a 401k pension. As a US expat you may think you have limited options, so we help you understand the possibilities and assess if rolling your 401k into an IRA is the best option for you.
IRA's generally offer a larger choice of investments, enhanced control, advantages for wealth transfers on death, potential tax breaks and more flexibility for withdrawals. It's an important decision which requires expert guidance.
Many investments for US citizens are classed as PFIC's (passive foreign investment companies), such as non-US mutual funds, hedge funds and ETF's and are generally taxed unfavourably.
Making a QEF election (qualified electing fund) in respect of a PFIC can potentially change your investment and taxation landscape considerably, so it's vital to seek expert advice.
If you have any doubts regarding your status as a US connected person, would like guidance on your US pension or simply looking for investment advice, contact us today and you'll get the expertise you need to make an informed decision.