View Single Post
Old 16-02-2020, 05:34 PM   #1779
Join Date: Aug 2012
Posts: 104
If you think you might stay -- you meet the love of your life and get married, for example -- then you don't want to be holding non-U.S. funds like IWDA or EIMI since they're considered "Passive Foreign Investment Companies" (PFICs). Even things that seem like simple stocks often are PFICs. So, strictly before you become a U.S. person -- and highly preferably sometime the calendar year before -- I would exit those positions and recast them into a more U.S. tax friendly posture. One simple way to do that is to sell both IWDA and EIMI and reinvest the proceeds in VT, Vanguard's U.S. domiciled Total World Stock ETF listed on the New York Stock Exchange.

There doesn't seem to be any limitation on F-1 visa holders participating in U.S. tax advantaged accounts such as IRAs, 401(k)s, 403(b)s, and 529s as long as you otherwise qualify. It'd be a good idea to avail yourself of those opportunities if you can, if you qualify.
Thanks for the confirmation. I think closing my IWDA/EIMI positions in the preceding calendar year might be a good idea. I'll also do some more research on the different tax advantaged accounts.

Note that you're evidently allowed to enter the Diversity Immigrant Visa lottery every October. Note also that you'll likely have some future difficulties renewing your Re-Entry Permit (REP) for your Singapore Permanent Residence if/when you're no longer a de facto resident of Singapore.
Losing my Singapore permanent residency (rightly so) is a trade off I've considered and accepted before applying for further study abroad. Even if I return to Singapore before my 5-year REP expires and get employed here again, it would probably be hard for the ICA to justify renewing my REP given the 2-3 years of missing "economic contribution" to Singapore.

If I eventually end up going back to Singapore for whatever reason, and lose my PR then I'll have to settle for an EP and possibly reapply for PR (I just hope that losing my current PR due to lack of presence in Singapore wouldn't put me on ICA's blacklist for work permits, but of course no one knows about that).

Thank you for your advice. I've been reading many of your past posts in the forum, from investments, CPF to insurance. You've been a great help!
lemniscate is offline   Reply With Quote