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Old 03-17-2009, 03:10 AM
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Foreigner living aborad, investing in a retirement account in the US

Hi, I wonder if you can help. Here's my situation:
I used to work in the US and had a 401K. Now I transferred the funds to a Rollover IRA. I do not have prospects of going back to the US and live there but I wish to keep investing in a retirement account there. I also wish to invest more than just the $5000/year. Here are my doubts:

1. Can I setup an IRA account and mix the Rollover Funds and IRA funds into one account? As a foreign living outside the US would there be tax implications?

2. As a foreign living outside the US, would there be tax implications for putting more than $5000 into my IRA account?

3. Is the IRA the best investment vehicle for somebody that lives outside the US and wishes to save more than $5000/year?

4. At the time of withdrawal, what would be my tax obligations (remembering that I saved more than $5000 per year and do not live in the US)?

Thanks in advance
Raquel



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