A beginner's(also a Non-PR) question about ROTH IRA

[Guest tonyzhao]

I am an H1 holder and have been working in USA for nearly 2 years. Since my boss did not provide 401k for me, my friend suggested me to open an ROTH IRA instead of just put all my salary in the bank. But I did not decide yet because I still have doubts. I have some questions to ask, hope someone who are familiar with

ROTH IRA in this forum could help me, thanks a lot.

1. If I open an ROTH IRA now and begin to put money in it, if I leave USA a few years later and do not come back USA again, could I get the money back? Can I authorized someone else to fetch the money for me? Is there any other convenient way I can use to fetch the money?

2. If I have a ROTH IRA for a few years, and after that I do not work in USA any longer, could I keep on put money in ROTH IRA each year when I am abroad? And could I fetch them after I am 60?

[Guest tonyzhao]

I noticed since last time I pose my question, lots of people in this forum have read my post, but it seems that my question is too singular to be answered. So chould someone give me some advice where I can get the answer of my case? I really appreciate for your help. Thanks.

[Guest saber]

Can I ask what would be the point of you putting money into a Roth IRA if you did not expect to live in the US after a while?

A Roth IRA would let you avoid US taxation on any gains from the acount. Of course if you don't live in the US you could just take your money back to where-ever now and not worry about US taxation either on gains you may have investing it.

[Guest tonyzhao]

I am really appreciate for your responding.

Actually I have begun to apply for PR and I want to stay in USA, since the process for applying for PR need 3-5 years, I do not want just put my money in bank, I want to do some investment, but as an EE engineer and almost know nothing about how to investment, the only thing I can do is use mutual funds just like others, of course, if possible, use IRA is the best way for me if I can stay here.

I ask those questions in my first post is based on the consideration that if my case for applying the PR fail, and let's say I have put money in IRA for several years, can I take my money back.

[Guest saber]

I am really appreciate for your responding.

Actually I have begun to apply for PR and I want to stay in USA, since the process for applying for PR need 3-5 years, I do not want just put my money in bank, I want to do some investment, but as an EE engineer and almost know nothing about how to investment, the only thing I can do is use mutual funds just like others, of course, if possible, use IRA is the best way for me if I can stay here.

I ask those questions in my first post is based on the consideration that if my case for applying the PR fail, and let's say I have put money in IRA for several years, can I take my money back.

In a Roth IRA you can always take out your original contribution without penalty.

So if you put in 4000 this year, you can take out 4000 down the line without any problems. The gains though would be taxed and you would have to pay a 10% penalty in addition to that tax. Considering the situation where your PR request failed and you had to take all the money out later on. If you earned no money in the year theoretically you would only have to pay the 10% penalty tax assuming your gains were under the level which is taxed. I am not a personal income tax expert so on that matter I would suggest you consult with a CPA or other tax expert as to the tax treatment of the gains on withdrawl.

But you can always appoint someone as your Power of Attorney to remove that money for you if you need. Alot of banks/brokerages have power of attorney forms which would allow someone to deal with your accounts for you.

[Guest tonyzhao]

Saber, thank you so much for your kindly answer.

Now I can make up my mind to put my money in Roth IRA.