What to do with government retirement savings in China?

[CowBoE 429]

My fiancee is in China, and she has several years before she reaches their official retirement age of 50.

I guess China has what would be equivalent to US Social Security and Medicare taxes Chinese workers pay,

and I think they call them "insurance" rather than "tax".

In any case, she has work many years and both her and her employers have contributed to some amount of money

into various insurance (tax) savings accounts.

The question is, what is the best way to handle this money if she intends to live in US permanently after our marriage.

1) Is it best to leave it until she reaches 50? Or is it best to cash them out transfer to US?

2) Does China even allow you to cash them out before turning 50 because she is immigrating to US?

3) If she becomes US citizen later, does she forfeit all or part of this money?

4) If she becomes US citizen later, does she forfeit all or part of this money?

5) Do you have any advice on this?

Thank

[NickD 202]

Your wife should be able to answer this question, mine was, but with Venezuela. She opened a bank account down there and is have a direct deposit made from their SS office to that account. But we have to send them a piece of paper every six months that cost us 88 bucks in FedEx charges to prove she is still alive. Could take a trip down there and buy stuff at 5-10 times the price as it is here. Or go to the black market and get 1/10th the value in US dollars.

So we just leave it. One advantage for us, they do accept Bolivars at the so called fair exchange rate for that high airport tax we have to pay to leave that place. So we use that money for that.

[CowBoE 429]

She wants to do import/export business between US and China, so we are thinking about leaving her money in China, but I don't know how that complicates the tax filing late. I may need to consult with Chinese international trade tax attorney.

But since each country has different Social Security rules, I was just wondering if anyone had researched nd had some experience in dealing with retirement fund when immigrating to US.

This could be as important topic as immigration stuff, as it involves big chunk of money and potential tax consequences from two countries. I am hoping or active discussion.

[NickD 202]

Wife's company retirement she contributed to was an entirely different issue. She was working for an American company and before Chavez closed the door was able to open a Miami bank account to have her funds transferred there. Was free from the IRS until she got her LPR, then had to file an W-9 with her bank so the IRS could takes their share on just the interested earned.

For what little interest these banks are paying today, can tell you, the IRS ain't getting rich. But they sure love to go against the little people. One thing they never learned, is when the buck leaves here, they cannot tax it.

[Darnell 8,478]

Most women who wish to fully capitalize their pension fund in China,

make arrangements with the company HR officer to make payments INTO the fund after they immigrate to the USA.

This can be done by another family member, or via monthly bank account transfer, depending on that HR officer.

So, ask yer lass to find out , but limit the question time right around the week before interview day, or a month before she actually resigns the position - some HR folk are cutthroat, seeing a lump sum that they can appropriate to themselves.

Although NickD's comments here are great anectoctal stuff, it doesn't focus on China-specific pension questions whatsoever.

[Ontarkie 13,915]

~~Thread moved to the China forum , from US Citizenship General Discussion - As this is a Country specific question~~

[unsmiley 111]

Most women who wish to fully capitalize their pension fund in China,

make arrangements with the company HR officer to make payments INTO the fund after they immigrate to the USA.

This can be done by another family member, or via monthly bank account transfer, depending on that HR officer.

So, ask yer lass to find out , but limit the question time right around the week before interview day, or a month before she actually resigns the position - some HR folk are cutthroat, seeing a lump sum that they can appropriate to themselves.

Although NickD's comments here are great anectoctal stuff, it doesn't focus on China-specific pension questions whatsoever.

This is very interesting. I was under the impression that you forfeit any funds you have "amassed" if you leave before retirement age. Darnell, is what you say possible for those currently working for the Chinese gov'ment? If so, can we trust that funds we transfer actually go into her account?

[Darnell 8,478]

sure, it's safe to assume, but that's the end game.

Prior, one must negotiate with the work unit, much.

Sometimes it's the negotiation that drains one of the energy. It really depends on the person at the work unit, as there's all sorts of stories for what went down during the negotiation.

The easy peasie versions were ....

Human leaves the work unit, makes contributions into her fund either monthly or yearly, directly with a bank or via a relative, until hitting the age of retirement.

So, it's really 'a unique event' for each person, I cannot say there is universal process for this. Must to talk with a human at the work unit, inquire.

Even with that said, I'll recommend (or remind you) that yer lass has a qq group that she hangs out with, and that group can suss out anything.

[roxer 3]

But isn't the company she uses in China to help her a) required to keep her on a work contract and b) also required to make a contribution to her account on her behalf in order to satisfy Chinese law?

[unsmiley 111]

Also, my wife says the Chinese retirement age is 60, not 50, at least for her.

[roxer 3]

Also, my wife says the Chinese retirement age is 60, not 50, at least for her.

My fiancée says the same. She says you either have to request the money back from the government or get a local business to help you in which they are on the hook if uncle Miao comes looking for a head count and your spouse isn't there.

[Removed030114 48]

...

http://www.kingandwood.com/article.aspx?id=The-Social-Insurance-Law-A-Milestone-in-Chinese-Legislation&language=en

Edited January 5, 2014 by CNTrav

[CowBoE 429]

Also, my wife says the Chinese retirement age is 60, not 50, at least for her.

Everywhere I looked, it says the retirement age is 50 gorgeous most women,

however this recent article mentions white collar female worker's retirement age being 55.

http://www.bloomberg.com/news/2013-12-24/china-confronts-workforce-drop-with-retirement-age-delay.html

[CowBoE 429]

http://www.kingandwood.com/article.aspx?id=The-Social-Insurance-Law-A-Milestone-in-Chinese-Legislation&language=en

Nice informative article. So it sounds like if you worked (contributed to retirement) less than 15 years,

then you are entitled to a lump sum of only your contribution. Or you can continue contribution (on your

own) until 15 years is reached and receive monthly payments.

But my fiancée has worked 16 to 17 years so she's past this condition.

My questions are:

1. Is there a lump sum payout option?

2. Is Chinese retirement money taxable in US?

This has to be one of the important topics that Chinese immigrants go through

so there must be some clear facts, and I am surprised to not findi much information on

this on internet.

[Darnell 8,478]

seriously, have yer lass talk with the work unit, see what's doable there.