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7 money moves for living abroad

Retirement » 7 Money Moves For Living Abroad

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No matter how easy the living is in your host country, remember to stash away cash for your golden years.

Individuals working for companies sponsoring a 401(k) plan should negotiate to contribute to the plan while abroad. If company policy excludes expats, ask if the plan can be amended to allow expat participation, says Peter Macaluso, vice president of FM International Services, a retirement plan provider firm in Melville, N.Y. Companies may find an amendment worth the value of having good employees overseas.

Persons with traditional or Roth IRAs should note that contributions to these vehicles might be prohibited while overseas. "The key is whether the individual has any U.S. taxable income. No taxable income, no IRA," says Macaluso.

If you've escaped all U.S. tax liability thanks to the foreign earned income or other exclusions, better find alternate ways to save. Consider establishing a brokerage, investment or savings account earmarked for retirement.

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