As of this year, I am now required to report my worldwide income to Japan.
I use a non-Japanese brokerage.
I understand that with a non-retirement account, when I buy and sell investments I need to keep track of the exchange rate when I buy and sell an investment, as well as the gain itself in order to know what my tax will be.
However, how does this work for an IRA?
I have many years before I will retire, but below are some questions I have about owing IRA accounts while living and retiring in Japan.
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Do I need to keep track of every transaction within the IRA, calculating the exchange rate of each day a transaction happens?
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Or, do I only keep track of the exchange rate of the contribution day and then the distribution date (as well as the distribution gain itself)? As in, even if I bought and sold investments 20 times, do I just calculate my contribution and distribution dates?
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What about investments in the IRA made before I became a full Japanese tax resident?
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Is there anything in particular I should be aware of?
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Are IRA distributions taxed at the same 20%ish rate as normal capital gains?
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Is investing in IRAs still a good thing or do they cause more issues than solutions while living in Japan? I understand Japan doesn’t view them the same as the US.
by LingonberryUnfair961