Anyone ever hear of such a thing?
http://www.internationalman.com/articles/the-next-shot-has-been-fired-at-your-ira
http://www.internationalman.com/articles/the-next-shot-has-been-fired-at-your-ira
Offshore IRA?
- Thread starter Justin Bilyj
- Start date
- 4,132
Just read this article and it has me scratching my head? There is no escape from the FEDS if you are declaring the tax exemption every year with an IRA.
The only way to escape the government this way would be to cash it out, pay those taxes and move the money offshore. That said, lately offshore isn't offering as much protection from the US government as it once did. It seems that many countries are now reporting US assets held abroad more and more.
If you're getting a current tax benefit from the government, they have access to the value, if they choose.
If it's about going international with your investment choices, you can.
all in all I question the validity of the article as good advice. Buy gold in Brazil to shelter it from taxes in your IRA? Government has NEVER said well we want the bricks, they've said we want the cash. So, when they send you a bill, it's for cash that can be taken from anywhere, not the bricks in question.
The only way to escape the government this way would be to cash it out, pay those taxes and move the money offshore. That said, lately offshore isn't offering as much protection from the US government as it once did. It seems that many countries are now reporting US assets held abroad more and more.
If you're getting a current tax benefit from the government, they have access to the value, if they choose.
If it's about going international with your investment choices, you can.
all in all I question the validity of the article as good advice. Buy gold in Brazil to shelter it from taxes in your IRA? Government has NEVER said well we want the bricks, they've said we want the cash. So, when they send you a bill, it's for cash that can be taken from anywhere, not the bricks in question.
- 10,318
I would have to agree, not very good advice in that article.
Lots of inaccuracies and misrepresentations in it.
As far as the offshore IRA goes, even if the IRA custodian is located offshore; for it to be classified as an IRA that means the custodian is reporting the IRA value each year on a 1099R. So the IRS knows what you have, where you have it, and how much its value is.
IF the US ever forcibly transferred qualified accounts into Treasuries (big if imo), and the offshore Custodian refused to transfer ownership.
You better believe the IRS would just send you a bill for the value (declared on the last 1099R) and would probably give you about a month to pay it.
(And the freedom of investments line is BS, you can invest in all sorts of stuff with a regular IRA)
Lots of inaccuracies and misrepresentations in it.
As far as the offshore IRA goes, even if the IRA custodian is located offshore; for it to be classified as an IRA that means the custodian is reporting the IRA value each year on a 1099R. So the IRS knows what you have, where you have it, and how much its value is.
IF the US ever forcibly transferred qualified accounts into Treasuries (big if imo), and the offshore Custodian refused to transfer ownership.
You better believe the IRS would just send you a bill for the value (declared on the last 1099R) and would probably give you about a month to pay it.
(And the freedom of investments line is BS, you can invest in all sorts of stuff with a regular IRA)
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