The best time to plan a return to the US is about five years out. Most of the expensive mistakes come from deciding in the last six months.
Moving abroad doesn't automatically end your ties to a US state. The state you last lived in, or still treat as home, can decide whether your IRA withdrawals carry state income tax, both now and when you come back.
Sticky states: some states, California being the best known, can keep treating you as a resident for tax purposes after you've left the country, unless you clearly cut ties.
Florida: no state income tax at all, and you can file a formal declaration of domicile. For an American abroad who plans to retire in the US, a Florida domicile can mean IRA withdrawals with no state income tax, now and after you return.
Questions worth asking yourself: Which state did I last live in before moving abroad? Do I still have a home, driver's licence or voter registration there? Which state do I expect to retire to, and does my paperwork already point there?
Confirm which US state you call home and make sure your paperwork matches it. Consolidate old 401(k)s and IRAs with one US custodian and one adviser. Check for any local investments that may be PFICs.
Get your Social Security estimate. The Social Security Fairness Act of 2025 removed the reductions that hit many people with foreign or non-covered pensions, so older estimates may be too low. Decide how and when you'll move savings held abroad back into dollars. Start shaping your portfolio toward the income you'll need once you're back.
Plan Medicare. It generally doesn't cover you abroad, but missing Part B enrolment can mean a lifelong late penalty of 10% for each full year you delayed, and returning usually means waiting for the January–March enrolment window. Decide how much of your savings should become reliable income and how much stays invested. Review the beneficiaries on every account.
Update your address and residency with every institution. Notify the tax authorities in the country you're leaving. Book a full review with your adviser in person.
Required minimum distributions start at 73, or 75 if you were born in 1960 or later. The years between retiring and your first RMD are often the best window for tax planning.
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