QuietWon,
As a resident alien, I find myself asking the same questions myself. I don't know what rules apply to 401ks or IRAs, but in general, taxes are only payable by non-resident aliens if the income is generated in the US. Capital Gains on stocks are not considered US-generated income. Therefore someone is non-resident can buy and sell US stocks (through Schwab, say) without incurring US cap gains tax. Note that real estate has special rules, so that buying and selling property will incur tax, even for non-res aliens.
There is one big catch, however. If an alien leaves the US having spent 8 (or more) of the last 15 years as a resident, and has a net worth of more than $500,000 (or income over $120,000), then they are considered to be leaving to avoid tax and are required to file tax returns (even though they are non-resident aliens) for the next ten years. One can file with the IRS for exemption from this requirement, but that would be at their discretion.
This is a complicated area, and I have not had much success finding someone who knows much about it (as you know, US citizens are always subject to US tax and therefore most tax people are not aware of the issues facing non-citizens). If anyone out there knows an expert in this field, let us know! I have found KPMG to have an "executive relocation" tax practice, but I haven't talked to them yet.
Richard |
