For the Roth:
Note that, to my knowledge, for EU resident investors (not US citizens) using Schwab, it is not possible to buy UCITS ETFs with dividend cash within an IRA (whether Roth or traditional). You can only purchase single stocks, bonds, or their offshore mutual funds. I am not sure if the rules are different for UK residents. However, you can buy UCITS ETFs outside the IRA account using a taxable account. Alternatively, as mentioned in my previous post, you can use Crossborder Wealth or a similar firm to set up the IRA with the broker, which should allow you to buy ETFs within the IRA (as always double check with them first as things may change). I hope this clarifies the situation.Roth :
- Note : US domiciled funds slightly more tax efficient in tax-sheltered accounts (No 15% tax on US stock dividends that UCITS have to pay). (Thanks Tedswippet)
- US Estate tax in UK not bad but India may be a problem. Need to check charity. If that is sorted, no need to worry about US estate tax in India or UK for me.
- UK : If I am in UK, Keep US domiciled funds in Schwab : use dividend cash to buy UCITS ETF (Cant buy US ETF due to PRIIP).
- India : But if I am in India, I read somewhere that schwab will not allow Indian residents to buy UCITS ETF. So, what to do with dividend cash since I cannot take it out of Roth ? Schwab may allow US domiciled ETFs for Indian residents so I could buy those with dividend cash.
- India : If estate tax is a concern, buy UCITS ETF Accumulation units within Roth during UK stay before going to India and check if they let me keep them when I move to India. Live with the slight tax inefficiency.
Statistics: Posted by 600D — Sun Nov 03, 2024 1:41 am — Replies 88 — Views 7426
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