Suggestions

:speech_balloon:

Make Roth Withdrawals in Most Other Taxable Income When Applicable

Original title: Custom treatment of taxes on Roth accounts (changed by PL staff) The number of expats and retirees leaving the US and living abroad is continuously increasing. It would be very helpful if we could choose to have Roth capital gains withdrawals taxed based on the brackets we have customized in taxation. Or we could choose what % of Roth withdrawals should be taxed. There are very few countries who acknowledge the tax free withdrawals of gains from Roth accounts. Thanks

2 votes

Tagged as Suggestion

Suggested 05 October by user Judy Xavier

  • Sign in to comment and vote. Sign in by email

  • 05 October Judy Xavier suggested this task

  • avatar
    Shawn Sansom

    This is small subset of a very large problem space: dual taxation.

    I don’t think we’ll want to add this as a one-off feature to add more config to a Roth account. It probably only makes sense if we were going to track and make every supported country aware of Roth account tax handling. If I have it right. Basically, Roths behave like regular taxable accounts in certain other countries. The problem is, you won’t be able to track the actual cost basis without a lot more config :)

    It’s definitely a complex situation. Your best bet right now is probably to model the Roth account as a Taxable Investment account for plans that model leaving the US.

    06 October

  • 06 October Shawn Sansom edited this task

  • 06 October Shawn Sansom approved this task