Pls note that majority of Americans do not think of IRA, Roth IRA, 401k, 457b, etc as a pension. The perception of "pension" is one that a company puts money aside (or takes money from employees income) every month to be paid on a monthly basis after the employee retires. In other videos about end of NHR...when someone referred to a pension, another commenter quipped that pensions have been long dead in the US. May I suggest changing the vid title to include something like "(IRAs, Roth, 401k, 457b, and other US retirement savings vehicles)". Without it, ppl may not view vid as they dont think it pertains to them.
@Freshexpattaxes4 ай бұрын
So sorry we are only responding now. For some reason it seems notifications from our KZfaq channel have been going to SPAM. Regardless of what the majority of Americans think or may think, all of the above are pensions under Portuguese law and treated as such.
@maryr75933 ай бұрын
@@Freshexpattaxes roth is not regarded as pension in PT...it is taxed. In US, Roth is funded with after tax dollars so in US the money is not taxed when you take it out. But it Portugal it would be taxed. State pensions, you've said would not be taxed.
@moorleydharan14852 ай бұрын
Four comments: 1. In order to consider Traditional IRAs as pension in Portugal, both the US and Portuguese tax authorities have to agree, otherwise I think we end up paying taxes in both countries and thus violate the basic tenet of double taxation. 2. If Roth IRAs are also taxable in Portugal, then how would you treat Roth conversions, where by US law I can move any amount of money from a Traditional IRA to a Roth IRA by paying taxes on it this year? 3. The concept of a pension, as described in the tax treaty between these two countries, seems to me "guaranteed periodic payments of a pre-determined amount", whereas an IRA is not guaranteed and the value is entirely dependent on how well individuals manage the investment portfolio and withdrawals. 4. Lastly, when we talk of pensions, are Social Security payments to non-government employees taxable in Portugal?
@entrophyentrophy95624 ай бұрын
Hi Pauln No I never got a reply from the presenters. I don’t know anything more than when I asked them the question. I was thinking the same as you but it isn’t clear to me. Entropy here😊👍
@Freshexpattaxes4 ай бұрын
So sorry about that. Luckily this message actually got to us so we went ahead and answered all the questions. We will monitor more closely now.
@maryr759310 ай бұрын
Pls consider adding a video about what PT considers as a govt pension? As one can see in the social media grp, it's not that clear. US can have city/town/village; county, state, federal govt paying pensions. Also some public state university employees are considered state workers and get state pensions. Some hospitals used to be county hospital until they were bought out by private company who then assumed the pensions. (For many employees in that situation they had worked 25 yrs there as a county hospital but finished their yrs to retirement as a private hospital employee. Some university hospitals are considered state employees as well...so ground gets murky fast.
@Pauln714 ай бұрын
Thanks for the question. I will be getting a pension from the state of Kansas
@Freshexpattaxes4 ай бұрын
All of the above are government pensions. We doubt a video is needed but we may do a clarifying article at some point.
@Pauln714 ай бұрын
@@Freshexpattaxes Cool. Thanks
@maryr759310 ай бұрын
In addition, as an additional tag line to the company name....pls consider adding "Expat international tax experts" or the Everything intl expat tax shop.....something to indicate in the channel title that it is for intl tax configuration and planning...otherwise it doesn't come up when one searches expat tax portugal.
@Freshexpattaxes4 ай бұрын
Done! Thank you!
@entrophyentrophy956210 ай бұрын
I’m glad I watched your video but I’m still confused. I thought I was moving to Pt in fall next year. I’m totally US pension income…retired educator state pension and social security. I didn’t think I had to worry because of US & Pt treaty until I saw this video and the one Zeef did with Josh, Expats Everywhere. I just applied for my passport. Do I have to go to Pt to get NHR through Fresh in next 2 months or can it be done from US? I did request expedited passport but it could be Jan. when it arrives.
@Pauln718 ай бұрын
I will be receiving a state pension from the United States. I have read that government pensions: Local, State and Federal are not taxed by Portugal because of the United States Tax treaty with Portugal.....Hope that is true.
@Pauln714 ай бұрын
Did you ever get an answer? Is your State pension exempt from Portuguese taxation?
@Freshexpattaxes4 ай бұрын
So sorry we are only responding now. For some reason it seems notifications from our KZfaq channel have been going to SPAM. US government pension is not taxed in Portugal unless you are both a resident and a CITIZEN of Portugal. So your government pension will not be taxed unless you apply for a Portuguese passport. Not sure what we said with Josh. Perhaps we used the term "state pension" which is how the UK calls social security.
@maryr75933 ай бұрын
@@Freshexpattaxes that is why using general terms like state pension, govt pension, pension in general is confusing. Perhaps if you use the wording you could make clarification. Like UK = state pension, US = govt pension (not including social security). Not sure how the Canadians refer to these things or the South Africans (lots of them in PT), Israel, Australia (all english speaking, all who have different ways of referring to things).
@scottmacconnell47010 ай бұрын
Let see if i get this (no NHR). If I have an IRA and over the life of that IRA the average return is 8% then 8% of what ever I pull from that account per year is pension and is taxable, not the entire amount. $100.000 x .8 = $8.000. $8.000 is progressively taxable not the entire $100.000??? something like that???
@Freshexpattaxes4 ай бұрын
Only what you take from the pension pot is taxable.