Many people come to California temporarily for work from outside the US and then end up becoming part of the great economy that encourages innovation and entrepreneurship for the long haul. They adjust their status to become permanent residents or US citizens. However, relocating to the United States, even temporarily, has unintended consequences that last a lifetime, particularly when professionals bring with them pensions and retirement assets that are not compatible with US tax-advantaged retirement schemes.
Often, these foreign pensions and retirement assets are subject to US federal and state taxes immediately, thus taking a big bite out of the nest egg that individuals were saving for their retirement years.
However, people in this situation have options. Individuals and families can work with international legal and tax advisors who understand the intricacies of tax treaties, foreign retirement funds, privatized pensions, and the regimes of Social Security to mitigate the unforeseeable tax costs of relocating to the US. Our team often works with founders and high net worth individuals from Canada and Australia, among other countries, to help them navigate complicated international tax and retirement regimes to enjoy their nest eggs in the Golden State.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.