I wasn't sure if this was best posted in the US forum or here, as IRAs have been discussed a fair bit in both places.
I am trying to open a Roth IRA with my retirement scheme provider in the US (have been with them since 1996). I want to rollover my 401k to a Roth IRA. So, no new payments, just shuffling my money about. In order to do this, I have to first open an IRA (with the same company).
I am hitting the "Patriot Act" wall. Below is part of the most recent message I got:
"Thank you for your email inquiry. It is my pleasure to assist you.
The USA Patriot Act requires you to provide a current physical residential address in the U.S. when you open an investment accountsuch as a Roth IRA. It should be the address where you reside and would receive correspondence. "
- I can not find ANYWHERE a requirement of the Patriot Act that you live in the US. In fact, I have found other references to the Patriot Act on other providers' Web sites that state ONLY that a requirement of the Patriot Act is that you confirm your identity (via passport, SS number, drivers' license, etc.) The main purpose seems to be that they want to confirm that you are who you say you are and you are not a money launderer or a t*****ist.
- has anyone else faced a similar situation after leaving the US, and if so, did you find a way around this? It seems ridiculous that I have lived and worked in the US for about 20 years, and this company has had all sorts of ID evidence from me before.
I could say more, but maybe will just wait to see what replies I get.
TOPIC
Opening IRA after leaving the US?
Discussion started on 16 Apr 2014
ID: #81
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dunroving
COMMUNITY MEMBER
dunroving
Posted on 15 Apr 2014, 22:23
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fulwood
COMMUNITY MEMBER
fulwood
Posted on 15 Apr 2014, 22:30
I will eventually convert my IRA to a Roth. if you want I'll call USAA later today as they should know this stuff with military deployments etc. i'll see what i can find out.
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lgabriel73
COMMUNITY MEMBER
lgabriel73
Posted on 15 Apr 2014, 22:30
Are you trying to apply on line? If so this could be where the problem lies. A lot of financial institutions from what i have been reading do require a physical US address when applying on line. Try calling to set up an account, you may have a different result.
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fulwood
COMMUNITY MEMBER
fulwood
Posted on 15 Apr 2014, 22:32
Okay. Dunroving just spoke with USAA. You cannot convert your IRA to a Roth once living overseas. If you had opened one before you left it would be different matter, you could transfer money to Roth at any time whilst in UK. USAA referred to Office of Foreign Assets Control if you can find it. Hope this helps.
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dunroving
COMMUNITY MEMBER
dunroving
Posted on 15 Apr 2014, 22:33
Thank you, any information would be appreciated. I am not sure if the situation would be the same if I were trying to roll over from a regular IRA to a ROTH, but I think so. It seems to be "any new account"
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dunroving
COMMUNITY MEMBER
dunroving
Posted on 15 Apr 2014, 22:33
Thank you, any information would be appreciated. I am not sure if the situation would be the same if I were trying to roll over from a regular IRA to a ROTH, but I think so. It seems to be "any new account"
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dunroving
COMMUNITY MEMBER
dunroving
Posted on 15 Apr 2014, 22:33
Bugger, just seen that. Thank you for calling them to ask.
It seems a bit like the whole "you can't open a UK bank account if you live overseas" situation (i.e., there really isn't any reason to refuse a non-resident UK citizen the right to open a bank account, in fact plenty of people on here have managed to do just that).
It seems ridiculous that I could move back to the US for a year to work, open a Roth IRA and then move back to the UK and continue to transfer to it, but I can't open a new Roth IRA with my existing provider. In these situations, I just want to know, "Why?"
It seems a bit like the whole "you can't open a UK bank account if you live overseas" situation (i.e., there really isn't any reason to refuse a non-resident UK citizen the right to open a bank account, in fact plenty of people on here have managed to do just that).
It seems ridiculous that I could move back to the US for a year to work, open a Roth IRA and then move back to the UK and continue to transfer to it, but I can't open a new Roth IRA with my existing provider. In these situations, I just want to know, "Why?"
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Pulaski
COMMUNITY MEMBER
Pulaski
Posted on 15 Apr 2014, 22:34
Can you not open a UPS store mailbox (street address, with the box marked as a "Unit" or "Apt") and then open the account using that address? Would they otherwise know that you're not actually in the US?
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dunroving
COMMUNITY MEMBER
dunroving
Posted on 15 Apr 2014, 22:34
A good friend would let me use his residential address, I'm sure. I thought about this option but was concerned about the potential consequences if it went pear-shaped, for him and for me. It is the Patriot Act, after all. 
In that situation, what is the worst that could happen, do you think?
In that situation, what is the worst that could happen, do you think?
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fulwood
COMMUNITY MEMBER
fulwood
Posted on 15 Apr 2014, 22:34
i think it's all to do with Office of Foreign Assets Control. I know it doesn't make sense. Well I have learned what to do myself when and if I ever move back for good. But no matter what will convert to Roth over time. I don't think you'll get a good answer as to why..