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Maintaining a 401K after returning home

Problem / Need advice
#1
  • 年金
  • mail
  • 2022/05/22 14:09

Regarding the 401K rollover due to divorce, I would like to invest the money in the U.S. until the time of pension receipt, since the penalty for early cash-out is substantial if I return permanently to Japan after the divorce (U.S. citizen, no GC).

If you know of any financial institutions that non-residents can maintain, I would appreciate your advice. Thank you in advance.

This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

#4
  • SJDummy
  • 2022/05/22 (Sun) 18:59
  • Report

It depends on the policy of the financial institution as to whether it is possible for a non-U.S. resident to maintain it. First, you should discuss this with your current investment company. I am a US citizen, but when I decided to move to Japan upon my retirement, I talked to the investment company I had been using, and they told me that they do not allow non-US residents to maintain an account. I checked with Fidelity Investment and found that it was possible, so I created an IRA account and a general taxable account with Fidelity and rolled over everything into that account. After moving to Japan, all access to the accounts was via the Internet, which was no problem. However, Mutual Fund is for US residents, so new purchases are not allowed. （ This should be the same with any investment company ） The sale of holdings prior to immigration was possible without any problems for both IRA and general taxable accounts. Purchases of common stocks and ETFs are possible even if you reside outside the US. Transactions can be done almost entirely online, but only the sale and encashment of Mutual Funds in IRA accounts could not be done online, and had to be done by mail after signing a prescribed form. （ Thus, it is time consuming. ） Sale and encashment of Mutual Fund in taxable account and Wire to other financial institutions were all possible online.
After living in Japan for several years, I returned to the U.S. As soon as I changed my address to the U.S., I was able to purchase ／ and sell my Mutual Fund online, all restrictions were removed.

This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

#5

I plan to move to Japan in the future and have an account with Union Bank of California, so I contacted the bank. They said that I can maintain the account even if I become a non-resident of the US. They recommended that I apply for Paperless for notifications, etc. and set up a password so that I can request money transfers by phone from Japan. I think it depends on the bank, so you should contact the bank where you have an account or want to open an account.

SJDummy,

I also have an IRA account with Fidelity and was wondering if I could open an account that would allow me to Wire to Japan. Thank you very much for your valuable information.

This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

#6

It's me, I am a financial consultant. Free consultation. Please contact me. I can respond immediately.

This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

#7

Mr. Prospective Returnee,
One point, regarding US->japanese wires, please note that the fees for yen wires from US banks to Japanese banks are often several percent or more. I opened a dollar deposit account when I was residing in Japan, and I send all my US->-Japanese WIRE in dollars. In that case, there is no dollar-＞ yen exchange fee required, only an International Wire fee $ 35. Since the exchange fee for dollar deposits in Japan is TTB + 1 yen, this method is the least expensive. （ Japanese banks are Mitsubishi UFJ). In addition, as you probably know, if the Wire amount exceeds JPY1,000,000 （ Japan ） or $10,000 （ US Dollar ）, the information will automatically go to the respective tax authorities in both Japan and the US. It is important to keep the documents for at least 3 years. In my experience, I have never been investigated for remittances in excess of that amount. （ That way I can save my setup and it is less hassle since it is all done online. ） Also, I always use 2-step verification （ by phone or text ） for these transfers, not just ID ／ PW. If you have any additional questions, please email me directly.

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#8
  • そんなに難しくない
  • 2022/05/30 (Mon) 14:27
  • Report
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You can open an IRA at any financial institution while you are living in the US, i.e. while you have an address here.
If you roll over your 401(k) into the IRA you opened, and then move your address to Japan when you return home, you should be able to maintain it with no problem.
If there is no particular need to wholesale now, I would suggest waiting until you turn 60 before transferring to Japan.

Currently, Citibank has an online international money transfer service, so you may be able to operate your own money transfer from Japan.
I think it would be easiest to prepare an IRA account and a Citibank account.

This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

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