Mutual Fund Accounts

I received this from T.RowePrice!!!!!

I'm assuming that an IRA will come under this new 'policy", I've written asking for clarification. These are far reaching and punitive restrictions, with long term consequences:

As our valued customer, we are writing to inform you about a change in policy for customers who reside outside the United States and who hold T. Rowe Price mutual fund accounts.

Growing complexity in complying with international regulations and recent changes to federal tax law associated with these types of accounts have caused us to review our policy with respect to investors residing outside the United States. For this reason, we have made the difficult decision to prohibit additional purchases or exchanges in mutual fund accounts with an address of record outside of the United States as of August 15, 2014. While we understand that this may not be your preference, we want you to be aware of options to maintain the ability to transact in your mutual fund accounts with T. Rowe Price.

Account Options
    •       If you are a U.S. citizen and have a permanent residence in the United States, you may change your primary address on your account to the address in the United States. Correspondence will be sent to this address, and there will be no change in account service or transaction capability.
    •       You may keep your current T. Rowe Price mutual funds registered to your foreign address. However, beginning on August 15, 2014, your accounts will be restricted, meaning that you may redeem or transfer assets from your accounts, but you will not be able to make exchanges or additional investments within the accounts.
If you have not either updated your address or transferred your account by August 15, 2014, your accounts will be restricted. Please note that some of the options mentioned above could have tax implications, as T. Rowe Price must abide by federal and state regulations, and we encourage you to review these options with a tax advisor

I would ask them about their IRA policy since the trading and purchasing of mutual funds within an IRA does not trigger any tax consequences in the US.  I believe they only report new contributions and withdrawals of IRA funds to the IRS.

However, not being able to trade and purchase funds in after-tax accounts is a real pain.

The US policies are really starting to scare me. Common sense doesn't seem to be at the top of their priorities.

The US policies are really starting to scare me. Common sense doesn't seem to be at the top of their priorities.

I agree, and I think that applies to many US policies these days.

Definitely check with them whether the policy also applies to IRA accounts. If it does just roll your IRA over to Vanguard.

If you decide to use a US address on the account be careful that doing so doesn't open you up to any state tax. You could use one of the mail services for US RVers.

Definitely check with them whether the policy also applies to IRA accounts. If it does just roll your IRA over to Vanguard.

If you decide to use a US address on the account be careful that doing so doesn't open you up to any state tax. You could use one of the mail services for US RVers.

Just got news... IRA's do come under the new policy...

I'm awaiting an answer to exactly what I can do from August 15 going forward. Why the IRS is interested in IRA's of a USC overseas is beyond me. Also the U.K and U.S Tax Treaties cover retirement accounts.

Good tip on Vanguard, thanks...

Barcrest, does this by any chance have anything to do with Fidelity Investments US? I'll fully understand a 'no comment' as a reply.

Sorry for the above obtuse post, but I never know who is who on different internet forums.

There were two posts made today on other sites, and one is very similar to the situation now faced by Barcrest.

The first is a USC UK resident with a ROTH IRA who has until 01 August to provide a US address or lose the ability to be able to buy more funds or exchange out of the fund. See Publius, June 18, 2014 at 8:29am.

http://isaacbrocksociety.ca/2014/06/12/the-looming-fatca-iceberg/comment-page-3/#comment-2043728

The second is on the Swiss site, and concerns a USC resident in Switzerland who has been informed trading on a brokerage account in the US will cease 01 August due to a foreign address. See post #130 by meloncollie:

http://www.englishforum.ch/finance-banking-taxation/200706-postfinace-demands-past-fbars-7.html

Barcrest, does this by any chance have anything to do with Fidelity Investments US? I'll fully understand a 'no comment' as a reply.

Innocent on this one -) Feel like a criminal for being a USC in the UK though! Looks like this is just the start of complete madness in the world of retirement accounts. So many of Americans living overseas will be affected, I'm really thinking that a 'U' turn will be made as it's going to damage U.S financial institutions and the negate the average Joe.