Moving Abroad from the US: Financial Planning Checklist
Moving abroad from the United States can change how your finances need to be managed.
You may still have US tax filing obligations.
You may still hold US retirement accounts.
You may start opening foreign bank accounts.
You may be offered local investment products.
You may earn in one currency, invest in another and plan to retire somewhere else.
Before you leave the United States, review:
federal tax
state tax
foreign earned income exclusion
foreign tax credits
401(k) plans
traditional IRAs
Roth IRAs
US brokerage accounts
foreign accounts
PFIC exposure
FBAR and FATCA reporting
banking and cash
currency
healthcare
insurance
estate planning
beneficiary forms
future retirement location
The question is not only:
What do I need to pack before moving abroad?
The better question is:
What financial decisions should I make before the move becomes harder to undo?
What should you review before moving abroad from the US?
Before moving abroad from the US, review your tax position, retirement accounts, investments, bank accounts, currency, insurance, estate planning and future retirement plans.
A pre-departure financial planning review should usually consider:
- whether you will remain a US taxpayer
- whether state tax residence may continue
- whether foreign earned income exclusion may be relevant
- whether foreign tax credits may be relevant
- whether your employer will change payroll or benefits
- what happens to your 401(k)
- whether you can still contribute to an IRA or Roth IRA
- whether your US brokerage account can continue to serve you
- whether you should avoid foreign mutual funds or ETFs
- whether foreign accounts may need FBAR reporting
- whether foreign assets may need FATCA reporting
- how much cash should be kept in the US
- how much cash should be moved abroad
- which currency you will spend, save and invest in
- whether insurance will still work abroad
- whether wills and estate documents need updating
- whether beneficiaries live in the US or overseas
The IRS says US citizens and resident aliens living abroad are taxed on worldwide income.
That means moving overseas does not automatically remove US tax from the financial planning picture.
The move may add another country to the plan, which is why tax, investments, pensions, reporting and estate planning should be reviewed before departure.
What needs to be reviewed before you leave?
US retirement accounts
Review 401(k), IRA, Roth IRA, TSP, old employer plans, rollovers, withdrawals, beneficiaries and whether the account still fits your plans abroad.
Investment accounts
Review US brokerage accounts, foreign investment risk, PFIC exposure, local platforms, ETFs, mutual funds and tax-aware portfolio structure.
Banking and cash
Decide which US accounts to keep, which accounts to open abroad and how much cash to hold in each currency.
Currency planning
Plan how you will manage income, savings, transfers, emergency cash, investments and future spending across currencies.
Moving abroad is a financial planning event, not only a relocation event.
Who this page is for
US citizens, green card holders, dual nationals, US taxpayers and international families preparing to move abroad from the United States.
Main assets to review
401(k), IRA, Roth IRA, TSP, US brokerage accounts, employer stock, cash, property, insurance, estate documents and future foreign accounts.
Main planning risks
State tax, account access, PFIC exposure, FBAR and FATCA reporting, currency mismatch, unsuitable foreign investments, insurance gaps and outdated estate planning.
Common trigger points
Accepting an overseas role, relocating family, marrying a non-US spouse, buying foreign property, retiring abroad, changing employer or opening foreign accounts.
Planning outcome
A clear pre-departure plan for tax, investments, retirement accounts, banking, currency, reporting, insurance and estate planning.
Why you should review your finances before leaving the US
Some financial decisions are easier to make while you are still living in the United States.
For example:
- your US brokerage provider may be easier to deal with before you use a foreign address
- your 401(k) provider may need updated instructions and beneficiaries
- your IRA or Roth IRA custodian may have restrictions for overseas clients
- your employer benefits may change after relocation
- your insurance may not cover you overseas
- your estate documents may need to account for foreign property or non-US beneficiaries
- your state tax position may need planning
- your cash and currency strategy may be easier to organise before departure
- you can avoid buying foreign funds that later create PFIC issues
- you can prepare for FBAR and FATCA reporting before opening foreign accounts
Moving abroad often adds complexity.
It can also make simple admin slower, especially when providers require US addresses, US phone numbers, wet signatures, notarised documents or local tax forms.
A pre-departure review helps you identify which decisions should be made before you leave and which can wait until you are settled abroad.
Moving abroad from the US financial checklist
Confirm your tax position
Review whether you will remain a US taxpayer, whether state tax may continue and whether foreign earned income exclusion or foreign tax credits may be relevant.
Review your 401(k)
Check plan rules, investment options, fees, beneficiaries, rollover options, provider access and what happens if you move abroad.
Review your IRA and Roth IRA
Check contribution eligibility, custodian restrictions, investment options, Roth treatment abroad, beneficiaries and future withdrawal plans.
Review brokerage accounts
Confirm whether your US brokerage provider can still service you abroad and whether trading or account changes may be restricted.
Avoid unsuitable foreign funds
Before buying local mutual funds or ETFs overseas, check whether they could create PFIC reporting or unsuitable US tax treatment.
Prepare for foreign account reporting
Foreign bank, brokerage and investment accounts may create FBAR or FATCA reporting obligations once you are living abroad.
Plan cash and banking
Decide which US bank accounts to keep, which accounts to open overseas and how much emergency cash to hold in each country.
Plan currency
Review salary currency, spending currency, savings currency, mortgage currency, investment currency and long-term retirement currency.
Review insurance
Check health insurance, life insurance, disability cover, employer benefits and whether existing policies remain valid overseas.
Update estate planning
Review wills, trusts, powers of attorney, guardianship, beneficiary forms, life insurance and how documents work if assets or family members are abroad.
Key decisions before moving overseas
What happens to a 401(k) when you move abroad?
Review whether your old 401(k) can stay in place and whether the plan still fits your retirement strategy overseas.
Can Americans abroad contribute to an IRA?
IRA and Roth IRA contributions can depend on income, exclusions, filing status and local tax treatment.
FBAR and FATCA reporting
Foreign accounts and assets may need US reporting once you live, bank or invest outside America.
PFICs and foreign funds
Foreign funds, ETFs and investment bonds should be reviewed before you buy them as a US taxpayer overseas.
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View Financial PlanningRelated Links
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- Financial planning for foreign nationals living in the US
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- IRA and Roth IRA planning for expats
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- Former US residents with US retirement accounts
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Moving abroad from the US financial planning FAQs
Important information
This page is for general information only and does not constitute personalised financial, tax, legal, investment, pension transfer, retirement, estate planning, insurance, healthcare, immigration or currency advice.
Moving abroad from the United States can affect federal tax, state tax, foreign earned income exclusion, foreign tax credits, 401(k), IRA, Roth IRA, brokerage accounts, PFIC exposure, FBAR, FATCA, banking, currency, insurance, healthcare, estate planning and future retirement income planning.
US tax advice should be taken from a suitably qualified US tax adviser or CPA. Local tax advice should also be taken in the country you are moving to.
Financial planning should be coordinated with legal, tax, pension, insurance and estate planning advice where appropriate.
Investing involves risk. Investment, pension and retirement account values can fall as well as rise, and you may get back less than you invest.
Currency movements can affect the value of investments, transfers and income.
