NISA (some very basic questions)

[JRTakoba]

Hello. I'm a 57 year old American (no debt, no home loan, some savings put away in Japan, more savings over many years in the U.S., two young children).

I'm hoping for some advice regarding NISA. My understanding is that, as a U.S. citizen, due to tax rules I am unable to invest via in NISA.
However, I assume my Japanese national wife can do so in her name? Is this correct?
(My understanding, for U.S. tax purposes, is that I must NOT file my U.S. tax returns as "married filing jointly").

If my wife’s can open a NISA account in her name, her course of action would be to:

1) Open an account with SBI or Rakuten
2) Choose NISA tsumitate
3) invest in eMaxis Slim total world or S & P 500

We want low-fee, passive index funds (i.e. something like Vanguard where I have my money in the U.S.).

Any advice (especially about good index fund options) would be appreciated.

Thank you in advance.

[RetireJapan]

Welcome!

Your wife can use NISA as long as she has no IRS entanglements

Your plan sounds fine. A low cost diversified mutual fund is the best option for many people in Japan.

You can also use NISA, but you will need to stick to the growth portion and you would only be able to buy Japanese individual stocks. These would not be tax exempt to the IRS. You would have to consider whether it is worth the hassle.

More info here: https://www.retirejapan.com/us-citizens ... d-holders/

[Kuroki]

Hi,

I'm in a similar situation, but my wife has a green card. Will she be able to use NISA? Or is she subject to the same tax restrictions as a US citizen?

Thanks!

[RetireJapan]

Hi,

I'm in a similar situation, but my wife has a green card. Will she be able to use NISA? Or is she subject to the same tax restrictions as a US citizen?

Thanks!

My understanding of this is that Green Card holders also have to submit an IRS tax return, so have all the same issues as US citizens do.

[Kuroki]

Depressing, but thanks anyway. So what options do U.S. citizens have, other than buying individual stocks in the growth portion of the NISA?

[RetireJapan]

Depressing, but thanks anyway. So what options do U.S. citizens have, other than buying individual stocks in the growth portion of the NISA?

https://www.retirejapan.com/us-citizens ... d-holders/

[Kuroki]

Thank you! I will contact Interactive Brokers on Monday.

[JRTakoba]

Thanks for the comments and advice.

RetireJapan writes, "You can also use NISA, but you will need to stick to the growth portion and you would only be able to buy Japanese individual stocks. These would not be tax exempt to the IRS. You would have to consider whether it is worth the hassle."

Don't think I want the hassle of trying to pick individual Japanese stocks (especially if they're not going to be tax exempt to the IRS).

1) Can my wife invest in NISA and I use iDeCo to reduce my tax burden now (and put off the paying of any taxes until I'm at a lower rate when I retire)?

2) Do the same rules apply for iDeCo as NISA (as described above i.e. tax exemption and the IRS)?

Thanks.

[RetireJapan]

Thanks for the comments and advice.

RetireJapan writes, "You can also use NISA, but you will need to stick to the growth portion and you would only be able to buy Japanese individual stocks. These would not be tax exempt to the IRS. You would have to consider whether it is worth the hassle."

Don't think I want the hassle of trying to pick individual Japanese stocks (especially if they're not going to be tax exempt to the IRS).

1) Can my wife invest in NISA and I use iDeCo to reduce my tax burden now (and put off the paying of any taxes until I'm at a lower rate when I retire)?

2) Do the same rules apply for iDeCo as NISA (as described above i.e. tax exemption and the IRS)?

Thanks.

Check out this page: https://www.retirejapan.com/us-citizens ... d-holders/

[trajan]

Remember the issue of gift taxes if your wife is not investing her money but yours.

Japan is a mess in this regard.