What Happens to Your 401(k) When You Retire Abroad?

Your 401(k) and IRA come with you. You don't cash them out or move them when you retire abroad. They stay invested and keep growing, and you draw from them the same way you would at home.

The Real Gotcha: Your Brokerage

The catch isn't the account, it's your address. Some U.S. brokerages restrict accounts once you have a foreign address, freezing new trades or asking you to close. Sort this before you move: keep a valid U.S. address, or switch to a brokerage that welcomes Americans living abroad.

Taxes on What You Withdraw

The U.S. taxes withdrawals from a traditional 401(k) or IRA as income no matter where you live, and required minimum distributions still start at 73. Some countries also tax withdrawals, though tax treaties often soften the double hit. Roth accounts are tax-free in the U.S., but a few countries don't recognize that status, so check your destination's treaty.

Can You Retire Abroad on $500k?

In many countries, yes. Drawing about 4% a year, $500k is roughly $20,000 annually, and paired with Social Security it stretches a long way where monthly costs run $1,500 to $2,000. Our country pages show real monthly costs so you can see exactly where your number works.