IRA tax question

Jun 08, 2006 1 Replies

I'm considering whether to invest in a regular IRA or a Roth IRA (or anything at all). My wife is from India and we plan to move there in 5-10 years. We'll probably retire in India or in some third country. My question is this: if I am living in India and I still have income after I'm 59.5, do I have to pay federal income taxes on income that I receive there? What about if the income is in my wife's name (and she's not a U.S. citizen)? I'm thinking that the standard IRA is probably better if I won't be hit by U.S. taxes on income that I have in India. Then my only income will be the IRA withdrawals. Otherwise the Roth IRA maybe looks a little better.




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US citizens or residents are subject to tax on their WORLDWIDE income, regardless of where they actually live. Depending on existing tax treaties some or all of the foreign earned income may be excluded.

Her income is taxable if you file Married Filing Joint or if she is a resident alien.

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