Personal Finance & Money Asked by deeper-understanding on February 14, 2021
Because there are limitations of IRA and 401(k), such as $7000 or some people use somewhat complicated backdoor to do it "legally" have a higher amount, but also subject to penalties if the money is needed, say, when the person is 55 or 58 years old, so then, if a person can go to Europe, Northern Europe, Asia and form a company or corporation, then is it true that if the law in that country is that stock gain is not taxed, then the stock gain can be tax deferred, all the way until the end when distributed to the person?
For example, if the person decides to take some money out when he is 58 years old, then he could sell it for the corporation’s account, and then distribute to himself, and only at that point it is taxable. So it is like an IRA or 401(k) but is more flexible?
Americans are taxed on their worldwide earnings. Forming a foreign corporation does not absolve Americans of this, and there are a lot of information sharing agreements from foreign countries, their banks and more to the US Treasury to help the US enforce its tax collection laws on its citizens.
Your idea cannot effectively function as a way to grow capital tax free.
Answered by CQM on February 14, 2021
Get help from others!
Recent Answers
Recent Questions
© 2024 TransWikia.com. All rights reserved. Sites we Love: PCI Database, UKBizDB, Menu Kuliner, Sharing RPP