question about giving up US citiezenship and pension benefits

Discussion in 'Professional Trading' started by kooltrader, Apr 24, 2006.

  1. A friend of mine asked me this. If you are uS citizen and will have social security benefits (in the future) and give up on US citizenship, will you lose the pension benefits? Or is theer a way to get the money you put into social security?

  2. Also what if you are a foreigner living in US and paying tax, will tax be lower, because you won't be having social security from US government
  3. Foreigners paying taxes can get social security if they do this long enough. I have a retired friend doing exactly this.

    Your taxes will depend whether you are also paying in your home country. if not, then ya pay the exact same as US citizens.

    if you are a trader, there are ways to not pay FICA at all however. it all depends whether or not you want to declare earned income and the ability to donate to IRA's, etc.

  4. I think the first FICA only tax on the first 90k, so if you making millions a year, you don't need to worry about FICA.
  5. Yes, something like that figure.

    Nothing on cap gains though. If you have no earned income, no FICA.

    Downside is no contribution to an IRA allowed, and no future social security (which I don't think will even exist in 20 years anyway). I've paid into the system for a total of 4 quarters in the past 20 years, and I have 20 more to go to receive anything. I believe you need to pay in for 5 years or something like that to get benefits.

  6. I think you can get a refund from SS. My mentor is Canadian, he is uncle who is Canadian, worked in Florida, for 10 years and paid SS and is now getting a refund.