Moving abroad: what happens to your investments
Moving abroad does not end your U.S. tax obligations. Here is what changes for your money, and where foreign funds fit in.
This guide is for people still planning a move. If you already live abroad, start with Do I have a PFIC?
Your U.S. brokerage account
Some U.S. brokerages allow accounts for clients living abroad. Others restrict or close them once you have a foreign address. Check your broker's non-resident policy before you move, so you are not forced to act on their timeline.
Your retirement accounts
Your 401(k) and IRA generally remain in place when you move abroad. What changes is how your new country treats them, whether contributions still make sense, and how withdrawals are taxed across two systems.
Buying local funds
Many funds sold locally are PFICs for U.S. persons, with different U.S. tax treatment and possible annual Form 8621 reporting. A local advisor may not be focused on U.S. tax rules, so it is worth asking before you invest.
Before buying any non-U.S. fund, ask whether it may be a PFIC and how it would be reported.
Coordinating both systems
The right structure depends on your country, residency status and plans. PFIC questions need coordinated tax and investment expertise: a qualified U.S. international tax professional for reporting and elections, and an appropriately authorized investment advisor for portfolio decisions. You can check a U.S. advisor's registration on the SEC's public database.
Not sure how this applies to you?
PFIC questions need coordinated tax and investment expertise. A qualified U.S. international tax professional can assess reporting and elections, while an appropriately authorized investment advisor can help evaluate portfolio decisions.
This guide is general education, not individualized tax, legal or investment advice. PFIC rules are complex and fact-specific. Speak with a qualified professional about your own situation before acting.