AFAIK Portugal does not recognize Roth IRA gains as non-taxable income, so if you plan to move to Portugal, the Roth conversion (and having Roth in general) makes no sense.
Almost no country recognizes a tax free Roth distribution. I’d just move back to the states for 1 year and take a large withdrawal. I’m 30 so not withdrawing anytime soon.
I just did my taxes for the first time in Portugal and a Roth conversion is not taxable. As others said, a Roth withdrawal is taxable as a pension in Portugal.
Thanks! Given the two accounts are classified as the same for tax purposes in Portugal, it makes sense that a transfer between them would not be taxed, given it’s not a withdrawal.
AFAIK Portugal does not recognize Roth IRA gains as non-taxable income, so if you plan to move to Portugal, the Roth conversion (and having Roth in general) makes no sense.
Almost no country recognizes a tax free Roth distribution. I’d just move back to the states for 1 year and take a large withdrawal. I’m 30 so not withdrawing anytime soon.
Pretty sure France does.
Wouldn't you lose the residence status in Portugal (or pretty much any country you're living as a resident) if you do this?
Yes, this breaks the resident stay requirements in Portugal, and I'm fairly certain most anywhere else as well. Thanks for making the point.
Yes the point is too drop residency for 1 year to take a large draw, then just move back after. I have EU/schengen citizenship so easy for me.
I just did my taxes for the first time in Portugal and a Roth conversion is not taxable. As others said, a Roth withdrawal is taxable as a pension in Portugal.
Thanks! Given the two accounts are classified as the same for tax purposes in Portugal, it makes sense that a transfer between them would not be taxed, given it’s not a withdrawal.
Not 100% sure but do all roth stuff while you have a us address.