Hi
I know my question is difficult because taxes evolve over the years, but here it is:
we are a professional couple in our late twenties and I am struggling to take any decision regarding retirement savings, so much so that I have been delaying it and keeping our savings into a simple savings account.
Currently living in the US, by the end of the year we will be both dual citizen of each other's country (US/France)
I think we will be retiring in france or be back to france before that.
I am trying to find out what is the best way to plan retirement in this case.
Are the IRA which offer immediate tax breaks the best plan?
With the foreign tax credit, would the whole 10% penalty for early withdrawal be meaningless because I already might be paying way more taxes in France than owed in the US anyway? Or is it ALWAYS taken out of your distribution upfront no matter what?
Will i be taxed by both government when taking money out of an IRA?
If i do a Roth IRA, will I be then taxed by the french government when I take distribution and am fiscally a french resident (even though I already paid taxes)?
I am sure I am not the only one having this issue but I am sure having a very tough time finding info.
As an FYI, we are not rolling in money, we are in a lower tax bracket, our company does not match anything so no advantage to 401K or else, and I am able to take advantage of any self employed options too, if anything is good.
oh am I also wondering which benefit i will be able to get? will we be eligible for us benefit like social security if living in the US and then french benefit if living i france? I did read that the french government recognizes my work years abroad but I am not sure in what limit.
Help?
I know my question is difficult because taxes evolve over the years, but here it is:
we are a professional couple in our late twenties and I am struggling to take any decision regarding retirement savings, so much so that I have been delaying it and keeping our savings into a simple savings account.
Currently living in the US, by the end of the year we will be both dual citizen of each other's country (US/France)
I think we will be retiring in france or be back to france before that.
I am trying to find out what is the best way to plan retirement in this case.
Are the IRA which offer immediate tax breaks the best plan?
With the foreign tax credit, would the whole 10% penalty for early withdrawal be meaningless because I already might be paying way more taxes in France than owed in the US anyway? Or is it ALWAYS taken out of your distribution upfront no matter what?
Will i be taxed by both government when taking money out of an IRA?
If i do a Roth IRA, will I be then taxed by the french government when I take distribution and am fiscally a french resident (even though I already paid taxes)?
I am sure I am not the only one having this issue but I am sure having a very tough time finding info.
As an FYI, we are not rolling in money, we are in a lower tax bracket, our company does not match anything so no advantage to 401K or else, and I am able to take advantage of any self employed options too, if anything is good.
oh am I also wondering which benefit i will be able to get? will we be eligible for us benefit like social security if living in the US and then french benefit if living i france? I did read that the french government recognizes my work years abroad but I am not sure in what limit.
Help?