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@caroburgh Yes - it’s on the contribution that FEIE is an issue. Rebalancing, distributions, etc. are all fine whether you’re using FEIE, FTC, or neither (as in, moved back to the US).

@charlesagrit While there's grey area in the PFIC definition, for the most part it's fairly clear: >75% of income is passive OR >50% of assets are passive Investment trusts and REITs clearly fall afoul of this, so they're out. But beyond those, most companies that actually make something or...

@getonyourfeetmusic For #2, if you only buy individual stocks you’ll be fine. This is the situation, for example, with UK ISAs. IRS doesn’t see it as a pension, no US tax advantages, but still get the UK tax advantages. Nothing to do with the treaty (which exists but doesn’t cover ISAs).

@charlesagrit My guess is that what they're saying is that a US citizen doesn't benefit from the reduced 15% dividend withholding that is in the US/UK tax treaty, so they're going to withhold the full 30%. However, when you file your US taxes, you'll be able to include the correct amount of...

@resjudicata Looks like everything they offer would be a PFIC, so pretty toxic for US citizens.

@qurious4christ ETFs are definitely PFICs, along with mutual funds, investment trusts, REITs, etc. Some individual companies arguably are too, that's where it gets pretty opaque (75%+ of income being passive or 50%+ of assets are passive).

@genenco It's still an issue in the UK - that EU rule got copied into UK law. The UK could change it, but no sign yet that they actually will.

@adiel And will also open an account for a US citizen? Not that I know of, but I would very much welcome the news if there are! Need Interactive Brokers to offer an ISA, really.

@deedae I'm also a US citizen living in the UK, so I feel your pain. A few options worth considering: In a UK SIPP, you should be fine holding mutual funds. This is the obvious account to use as your core investment. There are some tax treaty questions about ensuring it's a) a pension and b)...