FATCA - Compliant Financial Planning
SJB are in an exceptional position of being both regulated and experienced in Europe as well as the US, meaning we can help US expats living across the world. Please see the link to SJB Global regulations here and SJB US here.
US expats have had very limited opportunities in the financial advice market since FATCA was introduced. We often find individuals are unaware they are considered a US connected person. Many have faced challenges investing assets outside of the US in a legitimate manner due to the limited number of options available. These options come with complex compliance requirements for investors, custodians, advisers, and firms offering these services. Over recent years, more and more providers have begun to specialise in this space to create unique compliant solutions for US expats.
Who are US-connected persons?
The following people are considered US connected persons:
- Green Cardholders
- Other visa holders living in the US. Although this can get complicated. H1B visa holders, for example, are only sometimes considered US-connected persons.
- US taxpayers
- You were born outside the US but have one US parent
- You were born in the US, even if you left as a child
- Also, note the passport you have is irrelevant if you were born in America.
If any of the above apply to you or you believe you are a US-connected person, then we can help.
What requirements need to be met?
Tax-compliant investment or retirement services overseas can be utilized for US expats providing the below criteria is met:
- The institution you invest your funds with complies with FATCA
- You are filing the correct forms annually to the IRS
- Your financial adviser is regulated to provide cross border advice in both the US and your country of residence
Fortunately, SJB is in a unique position to cater for this market due to our cross-border business model with multiple regulations.
What options do US connected individuals have?
- US FATCA-Compliant Investment Plans – FATCA compliant platforms are designed for US-connected individuals who want to invest. They provide access to SEC-regulated investment managers and their managed portfolio services (MPS). These investments, that offer a collection of direct equities, bonds, ETFs, and mutual funds, are not penalized by the US tax code.
- US Compliant Retirement Plans – Foreign US style personal pension plans have been carefully designed to not just comply with FATCA but also provide additional tax benefits for individuals returning to the US. These products offer gross roll up and lucrative tax benefits that outweigh the benefits of many non-US pension options.
- 401k Rollover to IRA – Unlike UK expats, US expats don´t have the option to transfer their pensions overseas without the implication of a huge tax charge, however, there are still very attractive onshore options such as rolling over your 401k to an IRA.
Request your FREE call TODAY to find out how you can benefit from our services
What does a call include?
- Explain our service to you
- See what areas we cover in your jurisdiction
- Find out what your financial objectives are
- Provide Recommendations