ColeenD3
Expert Alumni

Retirement tax questions

Just as your IRA has the advantage of growing tax-free, so too, it has the disadvantage that expenses are not deductible.

 

Unfortunately, you won't be able to deduct foreign taxes you pay on investments held in a tax-deferred account, such as an individual retirement account (IRA) or 401(k). Since the income in those accounts is not currently subject to U.S. tax (at least not until you begin making withdrawals).

 

Foreign tax

 

Foreign tax 2