Australian Superannuation, IRS & Social Security

[Duke & Marie 1,389]

Hi All..

 

I know I’m going to have to talk with a Tax Professional about this.. and also think it’s somthing I should do sooner like before leaving Australia rather than later.. but

 

Can anyone explain in basic English to me the USA tax rules about my Australian superannuation? 

 

Im hearing that USA doesn’t fully understand our super system given it’s enforced by government but run privately either by finance companies to invest or by SMSF (SMSF is what I’m thinking to do, but worried it will again further complicate things). therefore earnings on investments, interest etc end up becoming something like foreign income... even though the government here will tax it ? True?

 

Im in the process of migration and really want to protect my super from being eaten up by the IRS given it is a retirement fund similar to but still not similar to your social security... I think it’s closer to 401k but don’t know for sure.

 

Also, what happens when I retire? I know I don’t get my social security but will share my husbands... but how is our retirement affected by my superannuation?

 

 

[Jess & Mike 0]

On 11/1/2019 at 10:57 AM, Duke & Marie said:

Hi All..

 

I know I’m going to have to talk with a Tax Professional about this.. and also think it’s somthing I should do sooner like before leaving Australia rather than later.. but

 

Can anyone explain in basic English to me the USA tax rules about my Australian superannuation? 

 

Im hearing that USA doesn’t fully understand our super system given it’s enforced by government but run privately either by finance companies to invest or by SMSF (SMSF is what I’m thinking to do, but worried it will again further complicate things). therefore earnings on investments, interest etc end up becoming something like foreign income... even though the government here will tax it ? True?

 

Im in the process of migration and really want to protect my super from being eaten up by the IRS given it is a retirement fund similar to but still not similar to your social security... I think it’s closer to 401k but don’t know for sure.

 

Also, what happens when I retire? I know I don’t get my social security but will share my husbands... but how is our retirement affected by my superannuation?

 

 

Hi there, did you ever find an answer to this? Thanks!

[Duke & Marie 1,389]

2 hours ago, Jess & Mike said:

Hi there, did you ever find an answer to this? Thanks!

Kind of.. provided you take it at retirement it’s exempt under the tax treaty, but it’s hard to do yourself it’s highly recommended that you get an international tax agent to assist.. 

 

International Treaty Law: The Convention Between the Government on the United States of America and the Government of Australia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, which is more commonly known as the U.S.-Australia Income Tax Treaty