Managing Your 401(k), IRA and Roth as an American Living Abroad

Published on: June 18, 2026

Americans who move overseas often assume their retirement accounts will simply travel with them, quietly compounding until they need the money. The reality is more complicated. Your U.S. retirement accounts do not disappear when you leave, but managing them from abroad introduces a set of problems most people never anticipate, from a brokerage suddenly restricting your account to a foreign tax authority that does not recognize a Roth at all.

This guide covers the main issues an American faces in keeping and drawing down a 401(k), IRA, or Roth while living abroad in 2026.

This is general information, not tax, legal, or investment advice, and this is a field where the right professional genuinely earns their fee.

Problem one: custody and account access

The first surprise is often a letter from your brokerage. Many U.S. financial institutions are cautious about maintaining accounts for clients with a foreign address, largely because of the regulatory burden of serving non-residents. Depending on the firm, an overseas move can mean restrictions on buying new funds, limits on trading, a forced transition to a different account type, or in some cases a request to close the account.

This is not universal, some custodians are comfortable with U.S. citizens abroad, and others specialize in serving them, but it is common enough that you should not assume your current provider will keep your account exactly as-is once you have a non-U.S. address. Sorting out custody before you move, and keeping a reliable U.S. mailing arrangement, prevents a lot of grief.

Problem two: required minimum distributions (RMDs)

Tax-deferred accounts cannot grow untouched forever. Once you reach a certain age, the IRS requires you to start taking required minimum distributions (RMDs) from traditional IRAs, SEP and SIMPLE IRAs, and most workplace plans like 401(k)s, and those withdrawals are taxed as ordinary income.

The SECURE 2.0 Act changed the starting age, and it now depends on your birth year:

• Born 1951 to 1959: RMDs begin at age 73.
• Born 1960 or later: RMDs begin at age 75 (this later age takes effect from 2033).

Your first RMD can be delayed until April 1 of the year after you reach your RMD age, but doing so means taking two RMDs in the same calendar year, which can stack your taxable income. Missing an RMD is costly: the penalty is 25% of the amount you failed to withdraw, reduced to 10% if you correct it promptly.

Two important distinctions for account type:

• Roth IRAs have no RMDs during the original owner's lifetime.
• Roth 401(k) and Roth 403(b) plans no longer require lifetime RMDs either, following a SECURE 2.0 change effective from 2024.

Living abroad does not exempt you from any of this. U.S. RMD rules follow the U.S. person, not their address.

Problem three: the country you live in may tax it all differently

This is the issue that catches people most off guard. The way the United States treats your retirement accounts and the way your country of residence treats them can be completely different, because your new country is not bound by U.S. tax categories.

The most painful example is the Roth. In the U.S., qualified Roth withdrawals are tax-free, that is the entire point of a Roth. But not every country recognizes that status. Some treat Roth withdrawals, or even the annual growth inside the account, as ordinary taxable income under their own rules. An account you built specifically to be tax-free at home can become taxable abroad.

Whether this happens depends heavily on the tax treaty (if any) between the U.S. and your country of residence and how that treaty addresses pensions and retirement savings. Some treaties explicitly protect certain account types or coordinate the timing of taxation; others are silent or ambiguous, particularly on Roths and on whether internal growth is taxable before you withdraw. Two Americans with identical accounts can face very different outcomes purely because they retired in different countries.

Problem four: double taxation and how it is managed

Because you remain subject to U.S. tax on worldwide income as a U.S. citizen, and your country of residence may also tax distributions, the risk of being taxed twice on the same money is real. The main tools that exist to prevent or soften this are the foreign tax credit (crediting tax paid to one country against tax owed to the other) and the relief provisions of the applicable tax treaty. Coordinating these correctly, getting the credit in the right country, in the right year, on the right income, is intricate, and doing it wrong can leave money on the table or create compliance problems. Reporting obligations may also apply, since foreign-held retirement accounts can interact with U.S. foreign-asset reporting forms.

What people actually do

There is no single right answer, but common approaches include: choosing a custodian that is comfortable serving Americans abroad before relocating; mapping how your specific destination's tax system and treaty treat each account type before you move (especially for Roths); planning the timing of withdrawals and any Roth conversions around both countries' rules and your RMD start age; and working with an advisor who handles cross-border cases rather than a purely domestic one. The right structure is highly individual, which is the recurring theme of this whole topic.

This pairs closely with our guides on moving a pension abroad (QROPS, IRA rollovers and the retirement-income map), on how double-taxation treaties work, and on the best countries to retire abroad.

Frequently asked questions

Can I keep my 401(k) or IRA if I move abroad?
Usually yes, the account continues to exist, but your custodian may restrict it once you have a foreign address. Check your provider's policy before you move.

At what age do RMDs start in 2026?
Age 73 if you were born 1951 to 1959, and age 75 if you were born in 1960 or later (the age-75 rule phases in from 2033). Roth IRAs have no lifetime RMDs.

Is my Roth still tax-free if I live abroad?
Under U.S. rules, qualified Roth withdrawals remain tax-free. But your country of residence may not recognize Roth status and could tax the withdrawals or the growth. It depends on local law and the relevant tax treaty.

Will I be taxed twice on my retirement withdrawals?
Potentially, if both countries tax the same income, but foreign tax credits and treaty provisions exist specifically to reduce or eliminate double taxation when applied correctly.

A note from JanusHermes

Retirement-account planning comes up constantly with clients relocating across borders, so we provide this as general background. But JanusHermes is a cross-border real estate platform, not a CPA firm, law firm, or regulated investment adviser, and this article is general information rather than tax, legal, or investment advice. The treatment of U.S. retirement accounts abroad depends on your specific accounts, your country of residence, the applicable tax treaty, and rules that change over time; the figures and rules here are current as of June 2026 and may change. Before moving, converting, or withdrawing, consult a cross-border tax professional and, where relevant, a regulated financial adviser familiar with both the U.S. and your destination.

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Disclaimer. This article is provided for general educational purposes only and does not constitute tax, legal, or investment advice, nor does it create any professional or advisory relationship. The treatment of U.S. retirement accounts abroad depends on your accounts, country of residence, the applicable tax treaty and rules that change over time; figures and rules here were believed accurate as of June 2026 but may since have changed. Always obtain advice from a suitably qualified, independent professional before acting. JanusHermes is a property information and listing platform, not a legal, tax or advisory firm, and accepts no liability for any action taken in reliance on this content.