Tricky - 401k vs Roth when potentially moving overseas (non US citizen)
Hello,
First of all, kudos to everybody answering questions in this forum. It is great to get such quality advice for free.
Here my question: I am a German national working here in the US (green card application currently filed). Me and my fiancé are thinking about moving to Germany eventually (if we move, not until in a couple of years).
I was looking at opening at Roth IRA for 2007, since the future withdrawals will be tax-free, compared to the 401k I already have. However, what would happen if I move back to Germany, get old and retire? Could Germany tax my retirement income out of my Roth IRA, although it is supposed to be tax-free in the US? In this case, I guess I'd better stick with a 401k.
I hope somebody can help me with this question. I know that nobody has a little crystal ball and can look into the future, but it would already be good if somebody would know how this work nowadays.
Thanks in advance!