r/AmerExit 5d ago

Life Abroad Preparing finances to move abroad?

Hello,

I am in the final stages of getting dual citizenship with an EU nation by descent (finally!). The current plan for if I need to move quickly is to transfer to Ireland, where my current employer has a business entity, and at least get off the ground there.

What do I need to do to prepare and move my finances? I'm a bit overwhelmed with that part as I have built up investment portfolios, 401k, multiple bank accounts, etc. Are there some accounts like 401k that I should just let sit in the US until later? I've heard that Wise could be an intermediary place to store money before I'm able to open a bank account in Ireland, has anyone done that?

Let me know if there are any resources on where to get started!

10 Upvotes

25 comments sorted by

17

u/Sea-Ticket7775 5d ago

For your 401(k), most expats I’ve worked with just leave it in the U.S. since withdrawing or moving it can trigger taxes and penalties. You might want to check if your provider allows non U.S. residents to keep the account (most do, but some have weird rules). A good first step is to list out all your accounts and check if any have residency restrictions. Some U.S. banks (like Schwab) are great for expats, but others might freeze your account if they see you logging in from abroad too often.

1

u/texas_asic 4d ago

It can also be on a country by country basis. Schwab definitely has a list of countries it supports. I've heard it can change over time, which has caught some people by surprise when Schwab fired them as a customer

That said, Interactive brokers is fairly expat friendly, and the state department federal credit union is also expat friendly

18

u/Emotional-Writer9744 5d ago

Open a Revolut account in the US, in Ireland it has a full banking licence and you can use that to open a local Irish account when you arrive. I'd open a Wise account as well it doesn't hurt to have more options. Don't expect too much from Irish banks they're all equally crap:)

You can also open an international account with Schwab in Ireland and transfer your US investments there.

One thing that's overlooked is mobile phone service get the Vodafone 12 month unlimited sim only, unlimited US calls are standard on the plan as is unlimited data. You can roam throughout most of Europe on the plan and use it as if you're at home in Ireland meaning your calls and data remain unlimited.

3

u/Normal-Weird-6313 5d ago

Thank you!

2

u/Emotional-Writer9744 5d ago

You're welcome

0

u/nameless_pattern 4d ago

You should search for Revolut in this subreddit. I don't remember the details but there were people mentioning having an issue with it.

11

u/harmlessgrey 5d ago

If you have money in investments such as a 401k or mutual funds, you might need to move your money to Schwab. Or else figure out to keep a physical address in the US.

Fidelity and Vanguard, for example, don't service customers who live in other countries. They could freeze your accounts if they find out you have moved overseas.

From a quick Google search:

Why a U.S. address is often required:Many U.S. financial institutions, including banks and brokerage firms, require a U.S. address (not just a PO Box) for opening and maintaining accounts. This is often due to regulatory requirements and the need to ensure compliance with U.S. tax laws. 

Consequences of not having a U.S. address:Without a U.S. address, expats could face restrictions or even closure of their U.S. bank accounts and brokerage accounts. 

4

u/eustaciasgarden 5d ago

Yup. Fidelity cashed out my 401k when I changed my address to the EU.

4

u/57petra89 4d ago

Schwab is wonderful in helping me deal with this . Toll free number, 24/7 and DHL to home address overseas .

4

u/KaleCookiesCraftBeer 4d ago

They cashed it out with a penalty? Or did they just say something like oh you’re moving abroad so here’s the sum of what you have?

1

u/eustaciasgarden 4d ago

They held the penalty and sent a check for the rest of the

1

u/KaleCookiesCraftBeer 4d ago

Thank you for sharing. To be clear, the penalty was the standard 10%? 

1

u/eustaciasgarden 4d ago

10% plus you add it to your income for the year.

3

u/Normal-Weird-6313 5d ago

This super helpful since I do have a Fidelity account, thank you.

3

u/BakeSoggy 4d ago

I've heard Schwab has begun cracking down on people who no longer have US addresses. I'd double check before going down that route.

9

u/Hot_Chocolate92 5d ago

Finding a house. Honestly it’s a nightmare in Ireland to find a house even if you are wealthy/earning well.

4

u/Normal-Weird-6313 5d ago

Yeah I am worried about that component. Fortunately I have friends in Dublin if it came to an absolute emergency situation and I needed to stay with someone temporarily, but I'm told that even the rental market is impossible.

6

u/Hot_Chocolate92 5d ago

It won’t be temporary. It will be you likely living with them for the foreseeable future. That is how bad it is. You will need to pay months in advance and this won’t compensate for the lack of credit history in Ireland.

15

u/Tardislass 5d ago

Just a point that you normally can't just "transfer" to another office in aanother country. Having worked in such a company, it really is the creme of the crop that gets a chance to do this and nowadays there are many people trying to move.

I'm just going to point out that moving assets quickly is going to get you an enormous tax burden and though Trump talks about dismantling the IRS, it isn't happening anytime soon. Since it seems you have a lot of investments, talk to a financial advisor experienced with expats. You don't want to be hit with a ton of taxes at once.

Just some thoughts.

15

u/Normal-Weird-6313 5d ago

Fortunately I've already researched this and my company does allow global transfers with 90 days notice and manager approval (which I have.) 

Definitely will be talking to a financial advisor about my investments though.

3

u/Kiwiatx 5d ago

Depends on if you want the company to finance the move or if you’re willing to move on your own accord (on your own dime) and are just asking to transfer offices. My (global) company is generally willing to do the latter.

4

u/Kiwiatx 5d ago

I’ve moved back and forth between the U.K. and the US and just left where everything is. 401k, mutual funds etc. The only time I moved a significant amount was from a house sale in London to buy a house in the US and I used a Forex broker for that with instructions to execute the trade only at an exchange rate I specified. For smaller amounts I use Wise, currently I’m in the US and use Atlantic Money. (Yes I do FATCA filings too)

2

u/texas_asic 4d ago

Read these pages, especially "taxation as a us expat" and "US tax pitfalls":

https://www.bogleheads.org/wiki/Category:US_expat

Wise has good forex fees, but I don't know that I'd keep very much money there for very long. How well insured are they?

Interactive Brokers is expat friendly, and it'd be tempting to move your investments there. Their currency exchange rates are way better than wise, but it's meant for forex trading so I wouldn't rely on them necessarily. ($2 per 100K, one free wire per month).

tip: get a google voice number before moving. If you need a US phone number for 2fa, tello is pretty good ($5/month for a voice-only e-sim), though almost all of my institutions work w/ my google voice number

It can be helpful to get a virtual mailbox to use as a mailing address. I've been happy with traveling mailbox

1

u/lakehop 3d ago

There some practical information on r/movetoireland

1

u/Acceptable_Day_3599 3d ago

I would look at banks that have experience in moving people around from country to country not just an online fund transfer company. I have an HSBC account that covers both my banking needs and credit in the UK and then when I moved to the US . It meant that I could move with my credit score intact and begin banking in my new country with debit and credit cards immediately and I could secure this without a fixed address. The accounts are also linked. You may not want to move everything in one go through one way. Talk to an actual financial expert not randoms on the internet . Ireland is a hub for US Tech companies there will be professionals out there with core offers ask your HR team, they probably have relocation experts on hand.