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[pedanterast]

US citizens can contribute to an IRA with any earned income; it does not have to be earned in the US (since it's taxable whether it was earned in the US or not, absent eligibility for the foreign earned income exclusion).  I don't know if the OP is a US citizen or not.

[totoro]

US citizens can contribute to an IRA with any earned income; it does not have to be earned in the US (since it's taxable whether it was earned in the US or not, absent eligibility for the foreign earned income exclusion).  I don't know if the OP is a US citizen or not.

OK, thanks for the info, but if I was a US citizen living in Australia I would still have to pay Australian taxes on a US IRA. Hence no tax deferral.

[pedanterast]

The OP doesn't say what country s/he is from.  And if you were a US citizen living in Australia then how the hell would Australia even know you HAD an IRA?

To be abundantly clear:  I don't know the tax laws in every single f@cking country.

Sheesh.

[totoro]

The OP doesn't say what country s/he is from.  And if you were a US citizen living in Australia then how the hell would Australia even know you HAD an IRA?

To be abundantly clear:  I don't know the tax laws in every single f@cking country.

Sheesh.

From comments upstream this is likely to be the case in many countries... not just Australia... If you complete your tax return honestly you have to include all sources of income according to the law in this country. Unfortunately for US citizens, living outside the US is very complicated tax-wise.

[pedanterast]

Unfortunately for US citizens, living outside the US is very complicated tax-wise.

But you said you are not a US citizen.  So, how do you know?  I lived outside the US for many years and the taxes were not at all complicated.  Compute tax, reduce by foreign taxes paid, end of story.

[pedanterast]

If you complete your tax return honestly you have to include all sources of income according to the law in this country.

An IRA is not a source of income.

[miraceli]

OP here. I am not an US citizen; I am a citizen from the South American country I might move back to. As I said, I already contribute to a state sponsored retirement fund there, and in the event of moving back and finding employment there, I would certainly up my contributions. So after reading the responses and learning about all tax issues (most of which, frankly, are Greek to me), it makes more sense to just keep the Fidelity account untouched. I just wasn't sure what could happen if I stopped contributing for +30 years (I'm 36 and my 40 year plan would end in 2047).

I am also not sure how I could continue to make contributions from abroad, since there seems to be a boatload of taxes and fees to send money out of my native country.

Thanks again. This has been enlightening.

[pedanterast]

since there seems to be a boatload of taxes and fees to send money out of my native country.

Sounds like Argentina.  Que quilombo.  No me boludees.  Dejá de hinchar mis pelotas.  Vamos a agarrar el bondi.  Ni en pedo.

[totoro]

If you complete your tax return honestly you have to include all sources of income according to the law in this country.

An IRA is not a source of income.

The stocks in the IRA pay dividends etc. They don't care that there are penalties to get the money out...