What happens to collecting from my ROTH IRA if I migrate to another country from the US?

Question

I am currently young, but curious what tax laws would apply with withdrawing this money if I moved out of the country and obtained citizenship elsewhere...

Answer 1

Any distribution from a Roth IRA that is qualified is tax-free. If your Roth IRA has been in place for five years, and you are over age 59.5, then no US taxes will be owed. There is no restriction that you be a US citizen when the distribution is taken.

If your distribution is not qualified, and would be taxable to a US citizen, then as described in the previous answer, you will likely pay more taxes on this distribution if you are a non-citizen.

Your new country of residence may or may not tax your distribution, even if it is tax-free for the US.

Answer 2

The distributions would be taxable in the US, probably at a higher rate as a non-resident alien since it would likely be subject to US source taxation at a flat rate. It may also be taxable in your new country as well.