Navigating US Retirement Accounts When Moving to France

Many Americans dream of retiring in France—drawn by its rich culture, world-class healthcare, scenic landscapes, and slower pace of life. But beyond the allure of croissants and countryside, there’s a practical side to retirement abroad: what happens to your U.S. retirement savings?

If you have a 401(k), IRA, 403(b), or other U.S.-based retirement plan, moving to France introduces a new layer of complexity. While there can be tax benefits, the interplay between French residency rules and the U.S. tax system means you’ll need to plan carefully to avoid double taxation.

Here’s a quick look at what you need to consider:

Key Retirement Plans & French Tax Treatment

401(k) & 403(b) Plans: These accounts lose their U.S. tax-deferred advantage in France. Withdrawals are not automatically taxed, as the U.S.–France Tax Treaty generally exempts pensions from being taxed in the country of residence (France). However, these withdrawals need to be declared on your French tax return, as they still contribute to your overall income, potentially affecting your tax bracket.

Traditional IRAs: Similar to 401(k) plans, distributions from a Traditional IRA are generally not taxed in France under the tax treaty. However, these distributions must be declared on your French tax return.

Roth IRAs: Roth IRAs are tax-free in the U.S., but France doesn’t automatically follow the same rules. While Roth IRAs are generally not taxed in the U.S., you may need to document their tax-exempt status to prevent them from being taxed in France. Proper documentation is essential to avoid unnecessary taxation.

457(b), 401(a), SIMPLE & SEP IRAs: These retirement accounts are typically taxed in France as pension income. To benefit from favorable tax treatment, you’ll need to prove that the plan is strictly for retirement purposes and follow the appropriate procedures to ensure it’s properly declared.

Additional Considerations

U.S.–France Tax Treaty: While it generally allows pensions to be taxed only in your country of residence (France), the rules vary depending on the plan and how funds are withdrawn. Filing the right French and U.S. forms is essential to avoid being taxed twice.

Relocating to France doesn’t mean losing control over your retirement income. With proper documentation, strategic withdrawals, and professional advice, you can enjoy your French retirement while staying tax-efficient.

Our full guide breaks down each U.S. retirement plan and how it's treated under French law—so you can retire abroad with confidence. To get your Guide click here...