Tax Filing for Americans Retiring Abroad
Retirement abroad brings unique US tax questions: Social Security, foreign pensions, RMDs, Medicare, and state tax persistence. FileAbroad helps retirees file accurately while preserving income and peace of mind.
Common Challenges
You receive Social Security and aren't sure how it is taxed from abroad.
You have a foreign pension or retirement account and don't know the US reporting requirements.
You need to take RMDs from IRAs or 401(k)s and aren't sure how to do it from overseas.
You worry about losing Medicare eligibility or coverage while living outside the US.
Your former state still sends tax bills even though you no longer live there.
How FileAbroad Helps
Prepare your annual return with proper reporting of Social Security, pension income, and investment distributions.
Coordinate foreign pension reporting with Form 8938, FBAR, and treaty-based positions when applicable.
Calculate Required Minimum Distributions (RMDs) and Roth conversion strategies from abroad.
Review state tax domicile and recommend steps to terminate persistent state obligations.
Screen whether a Streamlined catch-up is needed if returns were missed during the transition abroad.
Resources for Retirees Abroad
Pricing
Retiree returns are often straightforward but may include foreign pension complexity, RMD calculations, and state tax analysis. Straightforward annual returns start at $575. Cases with foreign pensions, treaty positions, or multi-year catch-up receive a custom quote.
Frequently Asked Questions
Is my Social Security taxable if I live abroad?
Yes. Up to 85% of your Social Security benefits may be subject to US federal income tax depending on your combined income. Living abroad does not exempt Social Security from taxation. Some foreign countries tax Social Security under their local laws, but the US has treaties or totalization agreements with many countries that prevent double taxation.
How are foreign pensions taxed in the US?
Foreign pension income is generally taxable in the US. The tax treatment depends on whether the US has a tax treaty with the pension country, whether the pension is treated as a trust (requiring Forms 3520/3520-A), and whether the pension fund contains PFICs (requiring Form 8621). Some treaties allow deferred taxation until distribution; others require current reporting of employer contributions. This is one of the most complex areas of expat tax.
Can I contribute to an IRA while living abroad?
You can contribute to a Traditional or Roth IRA from abroad if you have taxable compensation. However, if you exclude all your income under the FEIE, you may not have enough taxable compensation to support an IRA contribution. Many retirees use the Foreign Tax Credit instead of the FEIE to preserve IRA contribution eligibility. The contribution limits for 2025 are $7,000 ($8,000 if age 50+).
Do I still need to take RMDs from abroad?
Yes. Required Minimum Distributions from traditional IRAs, 401(k)s, and similar retirement plans still apply regardless of where you live. The penalty for missing an RMD is 25% of the amount that should have been withdrawn (reduced to 10% if corrected within two years under SECURE 2.0). FileAbroad calculates RMDs and includes them in your annual filing scope.
Will I lose Medicare if I move abroad?
You do not lose Medicare eligibility by moving abroad, but Medicare generally does not cover healthcare outside the US (with limited exceptions near the border or on cruises). Most retirees abroad purchase local health insurance or private expat health coverage. You should carefully evaluate whether to keep paying Medicare Part B premiums ($185/month in 2025) while abroad, as discontinuing them may result in lifelong late-enrollment penalties.
Questions About Retirees Abroad Taxes?
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