禁漫天堂

Hi - I am trying to find an institution that would allow me to have an account of an IRA LLC so I can hold euros in a retirement plan and avoid US taxes. Ideas would be appreciated!Thaks - @deborahbryon

That's illegal

Hi @Deborah,

Some banks in Portugal that offer these investment solutions (IRA - Individual Retirement Account):

...

And you can use an IRA to invest in a Portuguese Golden Visa:

Leveraging Your IRA for Portugal鈥檚 Golden Visa: A 2025 Guide

@Fred,

This is not illegal.

This is not illegal. - @JohnnyPT

I'm assured the IRS demand US citizens pay taxes on all income anywhere in the world.

How can avoiding US taxes not be illegal?

Are you sure?

I looked at this some while ago when I saw another thread.

The only way to totally avoid tax is to hide the company as a foreign entity using a non-dollar account. The owner, as I understand it, still has a personal tax liability.

To avoid that would be illegal.

However, I'm not a tax lawyer so I might be wrong.

I'm not a tax lawyer, what I found is this (gov website):

The U.S. taxes its citizens on their worldwide income, regardless of where they reside. This means your IRA income is generally taxable by the IRS.

The type of IRA (Traditional or Roth) dictates when and how it's taxed. Traditional IRAs are taxed upon withdrawal, while Roth IRAs are taxed on contributions, with qualified withdrawals being tax-free.聽 聽

1. The Foreign Earned Income Exclusion (FEIE) allows you to exclude a certain amount of your foreign earned income from U.S. taxation.

1. The U.S. has tax treaties with many countries to prevent double taxation. These treaties may affect how your IRA income is taxed.

1. Roth IRA contributions have income limits, which can also be affected by your foreign income

I'm not a tax lawyer, what I found is this (gov website):
- @JohnnyPT

Which brings us back to avoiding taxes being illegal.

A good accountant minimising tax is not.

Taxes may be reduced taxes if you live abroad. In this context, avoid = reduce.

The US IRS GOV website says so. So we can't say 鈥楾hat's illegal!鈥� as you have said...

Taxes may be reduced taxes if you live abroad. In this context, avoid = reduce.
The US IRS GOV website says so. So we can't say 鈥楾hat's illegal!鈥� as you have said... - @JohnnyPT

Reducing is good accounting, but getting Euro accounts to avoid taxation is not.

so I can hold euros in a retirement plan and avoid US taxes.

That's pretty explicitly asking how to commit a crime.

If you are a resident in Portugal or in Euro zone, you have euro accounts, right?...

I think I've contributed enough to this thread. The answers to the question posed by the OP are on the US government website and in my first post about IRA LLC.

Any comments you wish to make on this are your responsibility, not mine.

JohnnyPT is correct in saying that, in U.S. tax parlance, 鈥渢ax avoidance鈥� generally means reducing your tax liability by lawful means.

Here鈥檚 how the U.S. Internal Revenue Service (鈥淚RS鈥�) summarizes it:

鈥淭ax evasion and tax avoidance are different. Tax evasion is the illegal act of not reporting income, underreporting income, or providing false information to the IRS. Tax avoidance is a legal means to lower tax liability by arranging financial affairs to the best advantage and by claiming rightful deductions, credits, and adjustments.鈥�

I believe the original poster is asking whether she can use her IRA LLC (a limited liability company owned by an individual retirement account) to invest in foreign currencies on a tax-deferred basis.

I have not done this myself, but I noticed a recent announcement by Equity Trust Company, which acts as custodian for self-directed IRAs, that it has teamed up with a foreign exchange dealer to offer this service:

Disclosure: I have no connection with either company and cannot vouch for this service or either company.

I would get professional advice before proceeding. For an example of how costly it can be to make mistakes with self-directed IRA LLCs, search for 鈥淢cNulty v. Commissioner (Tax Court 2021).鈥�