I want to withdraw my investments in about 10 years for college expenses for my children (and then in another 30 years for retirement) and so am weighing the following for tax implications, could you let me know is the following accurate?
NISA Seicho— withdraw in 10 years, no penalty from JP side, capital gains tax from US side.
General investment account— withdraw in 10 years, could be taxed by both JP and US side, but if JP ends up being more tax paid this would be foreign tax credit and would not owe US taxes.
If the above two are true, I will save 2.4M JPY annually in NISA and all additional in a general investment account; and since longer holding has longer gains (and potentially more tax implications) I think it would make more sense to pull mostly from the general investment account and pay the taxes in 10 years, so the NISA can grow more as untaxed investments from Japanese side.
Could I get any thoughts on this strategy?
by NB_Translator_EN-JP