Hello.
Despite extensive research on various tax accountants websites and this one, I have not been been able to find a definite answer to my question. It is a follows:
I am a dual US/Australian citizen and will be returning to Australia in July 2025. When working in the US, I was contributing towards a 401k account.
I am now retired (63 years old) and am planning on taking monthly withdrawals soon after returning to Australia. This will mean that I will be considered a tax resident of Australia.
As an example of calculating how the 401k will be taxed, let me provide an example below:
Total 401k amount in account is 100,000 USD. Contributions were 60,000 and gain is 40,000. These amounts are before I move to Australia. One year after moving to Australia, the total amount in the account is 105,000 USD. So I gained 5000 USD after becoming a tax resident.
From what I have read on this site and other tax accountant websites, I will only pay tax on any gains earned AFTER I move to Australia. So once I move to Australia and file a tax return, I only need to declare the 5000 USD and the gain - is this correct?
Thank you in advance for any assistance that you may provide.
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