Retirement Distribution Planner
Optimal 401(k)/IRA drawdown strategy for US expats — RMD scheduling, Roth conversions, treaty treatment, and FTC optimisation over a 30-year horizon.
Retirement Accounts
Key Rules for Expat Retirees
RMD Age: Required Minimum Distributions start at age 73 (SECURE 2.0). Penalty for missing RMD: 25% of the amount not withdrawn (reduced from 50%).
Roth Conversions Abroad: If you're in a low-income year abroad (FEIE covers most earned income), converting Traditional to Roth can be done at very low tax rates. The converted amount is taxable but at potentially 0–12%.
10% Early Withdrawal: Distributions before age 59½ incur a 10% penalty on Traditional accounts. Exceptions: substantially equal periodic payments (72t), disability, or first-time home purchase ($10k).
Treaty Pension Articles: Many treaties exempt pension income from source-country tax or limit withholding to 15%. But the US savings clause often means US citizens still owe US tax. The benefit is avoiding double taxation via FTC.