Investing in U.S. (as U.S. citizen) while earning EUR in France

[leferowe]

Hi -- I'm a U.S. citizen living in France and earning in EUR. I have the following investment account types in the U.S. (under my parents U.S. address)

• Traditional and Roth IRAs -- Vanguard
• Brokerage account -- Betterment
• 401(k) -- Guideline

I am hoping to continue investing in these accounts; however, I'm trying to understand the best way to do so.

The approach I'm thinking of is to:

1. Each month convert EUR monthly savings to USD on Revolut
2. Send converted USD from Revolut to my U.S. bank account
3. Invest amount into my brokerage account into an index fund

There are a few things I'd like to understand:

• Is this a reasonable approach or is there a better approach I should be taking?
• Are there any tax implications of this approach?
• I will soon be receiving RSUs from my company and wondering if I should be regularly liquidating those (in this approach)?
• Is there a way for me to continue to invest in my Traditional IRA? When I file taxes in the U.S., I am reporting my income earned in France.

I've noticed several posts in regards to expat investing and I'm trying to put the pieces together. Thank you all in advance!

 

[andrewfenestra]

@leferowe Although I don’t have the answer, I am in the same situation and am thankful to OP for asking this question. Am in the same boat.

 

[resjudicata]

@leferowe I’d recommend you read Millionaire Expat. Helpful advice for this exact scenario. Note that you cannot invest in a US 401k, Roth or Traditional IRA if you’re now getting paid in France.

 

[stephendisraeli]

@resjudicata

Note that you cannot invest in a US 401k, Roth or Traditional IRA if you’re now getting paid in France.

Income that was taxed by the US can be used to make contributions to these plans. So as long as the FEIE is not used or the income exceeds the FEIE, contributions are possible, as the US taxes the worldwide income of their citizens regardless of where they live.

Whether contributing to such plans is economically sensible is another matter. It depends on the contents of the applicable tax treaty and whether the country of residence respects the tax advantaged status of these accounts.

 

[teofan]

@stephendisraeli In practice, you will not find a US broker willing to let a nonresident make IRA/Roth contributions.