Taxes on US social security and 401Ks and age limits work

2POSTS

9 years ago

1. I live and work in Asia. I'm searching to find a country in Central Europe for retirement. A must have for me is that it doesn't tax a resident on foreign pensions such as US social security and retirement accounts (401Ks and IRAs). The tax article stated that social pensions are exempt. Any idea if social pensions covers US ss and retirement accounts?

Romania is on my short list for exploration. All the other countries I investigated in Central Europe so far (with the exception of Hungary) fail this test because they tax retirement income.

2. Also, is there an upper age ceiling for working in Romania. I prefer to work 10 hours or so a week as a way to get more immersed in the culture. I was a VP of marketing in tech in the US and management consultant. Since moving out of the country I've taught entrepreneurship in Mexico, trained people on business English and presentations in China and am now coaching execs 1:1 on a variety of issues in Taiwan. Most places have no interest in older workers. Taiwan and some of Latin American countries are big exceptions.

How are things in Romania for older workers interested in something like part-time training?

Thanks.

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GuestPoster491 Guest

0POSTS

9 years ago

Sorry to say this, but you can cross off Romania from your list also. You'll be taxed here as well, and forget about finding work for only 10 hours a week. I'm willing to bet that no employer will go thru the trouble of getting you a work permit. Even younger, well qualified, younger workers find it difficult to get a work permit and a job here.

Romaniac
Expat.com Experts Team

Cynic UK/Netherlands Expert

8186POSTS

9 years ago

Hi and welcome to the Forum.

All countries will assess residents for tax based on there world-wide income; the difference being how much tax they charge on that income and where you pay it. The other significant issue, and what I think you are looking for, is a country that has a double-taxation agreement with the US; what this means is that your US income is assessed in the US and is then not assessed again where you are living; this link will take you to the IRS website list of all of those current countries.

If you have complicated tax affairs, I would always advise that you speak to a tax adviser who speciales in the country where you intend to live.

Hope this helps.

Need help with your tax obligations in Romania?

Consult a tax advisor

TheBoom Member

2POSTS

9 years ago

Thanks for the quick responses. I just realized that looking at the tax treaty would make sense. It turns out that the treaty covers ss and taxes are not payable on US ss in Romania. Unfortunately, it doesn't mention 401k type accounts so I imagine they are taxable.

"Social Security Payments
Social security payments and other public pensions paid by one of the Contracting States to an individual who is a resident of the other Contracting State shall be exempt from tax in both Contracting States"