RetireJapan

torata wrote: ↑Fri Feb 23, 2024 3:20 am Adam
I take the point about US tax treatment of assets held overseas, but the wider question of 'what happens to my NISA if I move overseas permanently or temporarily' is probably useful to a number of people.

Ok got it. Was clarifying because you specifically quoted the point about PFICs and that's also the glaring elephant in the room that the OP seemed to gloss over from Tkydon's reply.

adamu wrote: ↑Fri Feb 23, 2024 3:21 am

torata wrote: ↑Fri Feb 23, 2024 3:20 am Adam
I take the point about US tax treatment of assets held overseas, but the wider question of 'what happens to my NISA if I move overseas permanently or temporarily' is probably useful to a number of people.

Ok got it. Was clarifying because you specifically quoted the point about PFICs and that's also the glaring elephant in the room that the OP seemed to gloss over from Tkydon's reply.

Yeah, should have been more careful about editing the quotes.
Noted for next time.

torata

You can invest in Stocks through Growth NISA...

Unfortunately, I am not confident or risky enough to invest in individual stocks

Not Kokumin Nenkin Kikin. You can only contribute to that is you are in employment in Japan.

Noted. Therefore, I should not consider joining the National Pension Fund if I will be living outside Japan for an extended period of time within next few years. I might just pay the ¥400 National Pension Additional Insurance Premium to help increase my pension. I also heard some people saying that Japan will no longer pay pension to those who are living outside of the country. Did any of you hear the same thing?

Yes, you can leave it to ride, and pick up contributions if you come back to Japan to live anytime...

so the answer to the original poster's question: " My question is, can I continue investing in my NISA account" is 'No, you can't even continue to hold it.'

Ok got it. Was clarifying because you specifically quoted the point about PFICs and that's also the glaring elephant in the room that the OP seemed to gloss over from Tkydon's reply.

I appreciate all the information you have shared. I did not address Tkydon’s comment on PFICs because I assumed that I would not have any issues if I kept my investments as they were and did not add more money while I am away. But now Torata stated that I have to get rid of all the investment funds I own before getting a green card/leaving Japan or only invest in stocks on my Growth NISA.

This might be useful.
https://www.bogleheads.org/wiki/Investi ... _residents

That is one of the pages linked from here, naturally

https://retirewiki.jp/wiki/United_States

Darren wrote: ↑Fri Feb 23, 2024 3:05 pm

You can invest in Stocks through Growth NISA...

Unfortunately, I am not confident or risky enough to invest in individual stocks

Not Kokumin Nenkin Kikin. You can only contribute to that is you are in employment in Japan.

Noted. Therefore, I should not consider joining the National Pension Fund if I will be living outside Japan for an extended period of time within next few years. I might just pay the ¥400 National Pension Additional Insurance Premium to help increase my pension. I also heard some people saying that Japan will no longer pay pension to those who are living outside of the country. Did any of you hear the same thing?

The National Pension Program consist of various sections:
Basic National Pension - Kokumin Kiso Nenkin
https://www.nenkin.go.jp/international/ ... nsion.html


National Employee Pension Insurance - Kokumin Kosei Nenin
https://www.nenkin.go.jp/international/ ... loyee.html

National Pension Fund - Kokumin Nenkin Kikin
https://www.zenkoku-kikin.or.jp/

Additional Pension Supplement - Fuka Nenkin
https://www.nenkin.go.jp/service/jukyu/ ... 40625.html

iDeCo

Seamen's Pension Fund

etc..

You can only contribute to the Basic Pension and Fuka Nenkin from overseas, and you have to specifically apply to make Voluntary Contributions from overseas.
https://www.nenkin.go.jp/service/scenebetsu/kaigai.html

You may qualify under the terms of the Pension Totalization Treaty between the US and Japan to receive a full pension in one country based on the combined contributions in both countries...

Darren wrote: ↑Fri Feb 23, 2024 3:05 pm

Yes, you can leave it to ride, and pick up contributions if you come back to Japan to live anytime...

so the answer to the original poster's question: " My question is, can I continue investing in my NISA account" is 'No, you can't even continue to hold it.'

Ok got it. Was clarifying because you specifically quoted the point about PFICs and that's also the glaring elephant in the room that the OP seemed to gloss over from Tkydon's reply.

I appreciate all the information you have shared. I did not address Tkydon’s comment on PFICs because I assumed that I would not have any issues if I kept my investments as they were and did not add more money while I am away. But now Torata stated that I have to get rid of all the investment funds I own before getting a green card/leaving Japan or only invest in stocks on my Growth NISA.

You should speak with a Professional who understands PFIC on the best course of action for when you receive your Green Card and potentially become exposed to PFIC... (I don't understand it).

I cannot delete the post entirely I guess because of my account tier


**Post deleted**

Darren wrote: ↑Thu Feb 29, 2024 6:19 am I was curious how an AI would respond about Japan's stance on dual citizenship and the answer I received was interesting.

I don't think just sharing what an AI said without also verifying it is very useful

I just find it interesting that while Japan doesn't officially recognize dual citizenship, there are people with both Japanese and American citizenship who live in Japan without issues. The AI also highlights this discrepancy between the law and its practical enforcement. However, I will delete my post so as not to confuse anyone. Of course, we do not advise engaging in activities that could be considered illegal

Darren wrote: ↑Thu Feb 29, 2024 7:10 am I just find it interesting that while Japan doesn't officially recognize dual citizenship, there are people with both Japanese and American citizenship who live in Japan without issues. The AI also highlights this discrepancy between the law and its practical enforcement. However, I will delete my post so as not to confuse anyone. Of course, we do not advise engaging in activities that could be considered illegal

Japan turns a blind eye to people who are born with dual citizenship. It does not with people who acquire another citizenship.