Retirement Benefits

[timcastleman 6]

My apology if this is addressed somewhere already. A Chinese citizen and government employee with over 20 years will retire in 5 years at age 55 with full benefits of government employment. I am a US Citizen and we are considering this as we plan to marry. I own my home and a small US business and may retire in 10 years at age 67. We are most likely going to live in USA. The question is about her retirement benefits in China. We are assuming that if she becomes a US citizen the China benefits will be terminated. Therefore, would it be appropriate for her to just be a permanent resident instead of becoming a citizen? She will be assisting me with my business when dealing with Chinese suppliers and can draw a salary for that so after ten years she will be eligible for USA retirement benefits. If she is working here will that disqualify the China retirement? Is it correct that we should wait to apply for US Citizenship until the 10 years employment has passed? Any suggestions and guidance are very much appreciated!

[Nich-Nick 3,354]

My apology if this is addressed somewhere already. A Chinese citizen and government employee with over 20 years will retire in 5 years at age 55 with full benefits of government employment. I am a US Citizen and we are considering this as we plan to marry. I own my home and a small US business and may retire in 10 years at age 67. We are most likely going to live in USA. The question is about her retirement benefits in China. We are assuming that if she becomes a US citizen the China benefits will be terminated. Therefore, would it be appropriate for her to just be a permanent resident instead of becoming a citizen? She will be assisting me with my business when dealing with Chinese suppliers and can draw a salary for that so after ten years she will be eligible for USA retirement benefits. If she is working here will that disqualify the China retirement? Is it correct that we should wait to apply for US Citizenship until the 10 years employment has passed? Any suggestions and guidance are very much appreciated!

Whether China will pay her retirement if she takes up residence in the US, is a question to ask China. For example British pensions are payable to the pensioner whether they stay in the UK or move to the US.

Whether she becomes a US citizen or remains a permanent resident does not matter. She still files a US tax return and follows US tax laws. There would be no difference in the kind of return she files.

If China will pay her pension, she would report it on her required US return. Just like your US pension or Social Security payments may be partially or fully taxable, so would hers. Look up on IRS.gov "Is my pension taxable?" For example, if you plan to continue full time employment past Social Secuity retirement age, it is wiser to not start claiming your benefits until such time you are actually going to retire. The more money you earn in income, the more of your SS is taxable. How much of a pension is taxable depends on the source, your total income, and other factors, so you need to read the details from the IRS.

I can think of no reason why one should defer citizenship until you have become fully vested in Social Security by working 10 years.