Transferring funds over 10k

[Naes 12,205]

Hello everyone,

 

I am a k1 beneficiary who is still waiting for noa2, however this question will be about my friend who just moved to US on j1 visa.

(I'm not even sure if it's relevant) 

 

she had an account in japan which is left here because of the payments that would be taken from that account and then I was going to transfer her the rest which is higher than 10k ( I have the permit to use and close this account from her in written form). 

 

The amount for a Japanese way of living is really low so we didn't even think about it, however I learnt the rules are way different than japan in US, and we don't want anything to go wrong just because we didn't know.

 

my questions are 

 

1) the wire transfer limit here in most companies is 10.000$ Which means I will have to make 2-3 transfers. Will this be a problem, as everyone states 1 transfer is better?

 

2) this is the money she saved during the time she lived here as a student and taxed in japan already. How is she going to inform the bank or IRS or whoever she needs to inform? 

 

3) should she talk to her bank first about the incoming transfers?

 

and overall is there anything we should be careful-know about?

 

thank you in advance for all the responses.

 

i know it is not normal or the most efficient way to ask these instead of the person in question, however as she doesn't use vj, and this will also be a question of mine for the future I decided to ask about it. 

[Suss&Camm 2,213]

22 minutes ago, Naes said:

Hello everyone,

 

I am a k1 beneficiary who is still waiting for noa2, however this question will be about my friend who just moved to US on j1 visa.

(I'm not even sure if it's relevant) 

 

she had an account in japan which is left here because of the payments that would be taken from that account and then I was going to transfer her the rest which is higher than 10k ( I have the permit to use and close this account from her in written form). 

 

The amount for a Japanese way of living is really low so we didn't even think about it, however I learnt the rules are way different than japan in US, and we don't want anything to go wrong just because we didn't know.

 

my questions are 

 

1) the wire transfer limit here in most companies is 10.000$ Which means I will have to make 2-3 transfers. Will this be a problem, as everyone states 1 transfer is better?

Not a problem. You can transfer as much as you like. AND YOU SHOULD ABSOLUTELY NOT DO IT IN SEGMENTS! That will make it look as if you are trying to avoid "detection". There is no limit on how much you can transfer. The $10k is simply a reporting limit when you enter the country with cash (meaning it has to be declared - that's it). Large transfers will just be flagged and checked extra to avoid money laundering, that's is. I transferred way more myself with no issue. 

Quote

 

2) this is the money she saved during the time she lived here as a student and taxed in japan already. How is she going to inform the bank or IRS or whoever she needs to inform?

She doesn't need to inform anyone. When you make the transaction the bank will have you state from where the money comes one the form. That's it. There is a paper trail, that's all that's needed.

Quote

 

3) should she talk to her bank first about the incoming transfers?

There is no need, all she needs to give you is routing an account information of that bank.

Quote

and overall is there anything we should be careful-know about?

 

thank you in advance for all the responses.

 

i know it is not normal or the most efficient way to ask these instead of the person in question, however as she doesn't use vj, and this will also be a question of mine for the future I decided to ask about it. 

I don't see  any issues. When it is money that has already been earned and taxed and that has been deposited in the account as such there is no problem.

 

edit: double check Japans tax agreements with the US - but I would be VERY surprised if there isn't one that covers double taxation with a country such as Japan.

Edited December 14, 2017 by Suss&Camm

[Naes 12,205]

10 minutes ago, Suss&Camm said:

Not a problem. You can transfer as much as you like. AND YOU SHOULD ABSOLUTELY NOT DO IT IN SEGMENTS! That will make it look as if you are trying to avoid "detection". There is no limit on how much you can transfer. The $10k is simply a reporting limit when you enter the country with cash (meaning it has to be declared - that's it). Large transfers will just be flagged and checked extra to avoid money laundering, that's is. I transferred way more myself with no issue. 

She doesn't need to inform anyone. When you make the transaction the bank will have you state from where the money comes one the form. That's it. There is a paper trail, that's all that's needed.

There is no need, all she needs to give you is routing an account information of that bank.

I don't see  any issues. When it is money that has already been earned and taxed and that has been deposited in the account as such there is no problem.

Thank you so much for your replies. 

 

I will have one one additional question;

 

we were thinking of using transferwise and they do not let more than 10.000$ (more like 1m yen) per transfer, because they send it to a bank account. This would mean at least 3 transfers.

 

the only other way for us to transfer from Japan with the total amount would be goremit however in this case we want it as collecting as a cash and depositing to the bank because they charge an extra of 3% for international incoming transfers 

 

which one is the better or advisable option

Edited December 14, 2017 by Naes
Correction

[NikLR 13,227]

Keep looking at different banks ans transfer companies until you find a reputable one with the best deal.  

[andy78 178]

44 minutes ago, Naes said:

1) the wire transfer limit here in most companies is 10.000$ Which means I will have to make 2-3 transfers. Will this be a problem, as everyone states 1 transfer is better?

 

16 minutes ago, Naes said:

we were thinking of using transferwise and they do not let more than 10.000$ (more like 1m yen) per transfer, because they send it to a bank account. This would mean at least 3 transfers.

 

the only other way for us to transfer from Japan with the total amount would be goremit however in this case we want it as collecting as a cash and depositing to the bank because they charge an extra of 3% for international incoming transfers 

 

 

Can you do one bank to bank wire transfer instead of using those companies?

 

[Naes 12,205]

Just now, andy78 said:

 

Can you do one bank to bank wire transfer instead of using those companies?

 

Japanese banks are extremely primitive in that sense. So because it would be my name sending to her name they make extreme costs and then she would also have to pay it the receiving cost on top of it.. goremit is actually connected to a bank here so that would be the best choice we could have but then Bank of America also takes a 3% and that would end up about 1000 dollars to send 30.000...otherwise we wanted that too..

[NikLR 13,227]

Cant she just do this herself with you helping her? My husband often talks his mom and brother through things over the phone as they live across the country. 

[Naes 12,205]

8 minutes ago, NikLR said:

Cant she just do this herself with you helping her? My husband often talks his mom and brother through things over the phone as they live across the country. 

she is in US and the money is in a Japanese bank... and Japanese bank don't really offer internet banking... nor they even have a functionality such as a debit card.. so I'm stuck with the money. 

 

For me as long as I can find a good way there's no problem (I won't be paying anything myself)

 

she's literally alone in this if I call quits, because we were both expats in japan. 

 

But I'm trying to find different banks and systems right now as you said.. cause I started to think she misunderstood that 3% incoming fee... I'll ask her to ask the bank again.

Edited December 14, 2017 by Naes

[Suss&Camm 2,213]

32 minutes ago, Naes said:

Thank you so much for your replies. 

 

I will have one one additional question;

 

we were thinking of using transferwise and they do not let more than 10.000$ (more like 1m yen) per transfer, because they send it to a bank account. This would mean at least 3 transfers.

32 minutes ago, Naes said:

 

the only other way for us to transfer from Japan with the total amount would be goremit however in this case we want it as collecting as a cash and depositing to the bank because they charge an extra of 3% for international incoming transfers 

 

which one is the better or advisable option

OK, So I didn't know that the $10k limit was due to Transferwise. Many people assume they can't transfer more than $10k at a time. If this is due to Transferwise limitations, there shouldn't be an issue.

 

So you want to withdraw the money in cash in the US and then deposit it into the account? I don't see an issue with it as long as she then keeps the "evidence, i.e. paper trail of it" in case she is asked for it. Since taking it out in cash technically ends the trail. This is still inside the US though. It should be fine. I would do whatever makes the most financial sense.

[Suss&Camm 2,213]

4 minutes ago, Naes said:

she is in US and the money is in a Japanese bank... and Japanese bank don't really offer internet banking... nor they even have a functionality such as a debit card.. so I'm stuck with the money. 

 

For me as long as I can find a good way there's no problem (I won't be paying anything myself)

 

she's literally alone in this if I call quits, because we were both expats in japan. 

 

But I'm trying to find different banks and systems right now as you said.. cause I started to think she misunderstood that 3% incoming fee... I'll ask her to ask the bank again.

My bank also had an incoming wire transfer fee.. it's common. Mine was lower though. I used TorFX to transfer my funds, which is a currency broker, that made sure I got the best rate.

Edited December 14, 2017 by Suss&Camm

[Naes 12,205]

1 minute ago, Suss&Camm said:

OK, So I didn't know that the $10k limit was due to Transferwise. Many people assume they can't transfer more than $10k at a time. If this is due to Transferwise limitations, there shouldn't be an issue.

 

So you want to withdraw the money in cash in the US and then deposit it into the account? I don't see an issue with it as long as she then keeps the "evidence, i.e. paper trail of it" in case she is asked for it. Since taking it out in cash technically ends the trail. This is still inside the US though. It should be fine. I would do whatever makes the most financial sense.

Thank you again!

 

as always the most important thing is the paper trail!  

 

I'll keep my eyes open for other options and if we're set with transferwise I'll make sure to keep the paper trail on both ends! 

[Naes 12,205]

1 minute ago, Suss&Camm said:

My bank also had an incoming wire transfer fee.. it's common. Mine was lower though. I used TorFX to transfer my funds, which is a currency broker, that made sure I got the best rate.

Is 3% normal? Cause I can't find anything about it. What I find is more of a 30 $ fee. I'm thinking that she misunderstood but don't really know about it... banking in Japan domestically is basically free

[Suss&Camm 2,213]

11 minutes ago, Naes said:

Is 3% normal? Cause I can't find anything about it. What I find is more of a 30 $ fee. I'm thinking that she misunderstood but don't really know about it... banking in Japan domestically is basically free

It depends on her bank. I had a flat rate with BoA (would be waived now since I'm a preferred customer). From this list put together by Nerdwallet this year, Fidelity seems to be one of the few with a 3% (or % at all,) rate.

 

https://www.nerdwallet.com/blog/banking/wire-transfers-what-banks-charge/

[Suss&Camm 2,213]

You could have her open an account with another bank, with no fee..

[Naes 12,205]

1 minute ago, Suss&Camm said:

It depends on her bank. I had a flat rate with BoA (would be waived now since I'm a preferred customer). From this list put together by Nerdwallet this year, Fidelity seems to be one of the few with a 3% (or % at all,) rate.

 

https://www.nerdwallet.com/blog/banking/wire-transfers-what-banks-charge/

@Suss&Camm & @NikLR

Thank you all so much really saved my day (actually week) and my mental health as noa2 wait is already draining enough

 

thank you thank you thank you  

 

1 minute ago, Suss&Camm said:

You could have her open an account with another bank, with no fee..

I'm thinking about that too but she told me it was Bank of America and that list doesn't show a percentage so I'm going to go ask Her to check again maybe she misunderstood.