MasAmerica - מיסוי אמריקאי

06/05/2025

Who Should You Name as Your Beneficiary?

Roth IRA Meets Israeli Tax Code

Naming a beneficiary on your Roth IRA in the U.S. is easy. But if you or your heirs live in Israel, that simple decision can have complicated tax consequences.

Here’s what to consider:
If Your Beneficiaries Live in Israel:
The U.S. doesn’t tax inherited Roth IRAs.
Israel might — because it may not recognize it as a retirement account or inheritance.

Israeli tax authorities could view:
*The entire Roth IRA as a taxable foreign asset.
*Distributions to heirs as regular income (taxable).
*Gains inside the account as subject to capital gains tax, even if the money stays inside.

And this can happen even if the heir is just listed as a beneficiary and doesn’t actively withdraw funds!

Planning Tip:

If your heir doesn’t live in Israel, the Roth IRA remains tax-advantaged. But if they do, consider:
*Trust structures that may reduce Israeli taxation.
*Whether the Roth IRA should be liquidated during your lifetime while you’re a U.S. resident.
*Coordinating with a cross-border tax advisor.

This stuff is nuanced, and cookie-cutter solutions just don’t work.

Need advice? Contact MasAmerica, your U.S. tax advisors in Israel. 073-769-0600

30/04/2025

24/04/2025

Roth IRAs – Friend or Foe in Israel?

💰 Loved in the U.S., Taxed in Israel?

Roth IRAs are one of America’s favorite retirement vehicles.
They offer:
✅ Tax-free growth
✅ Tax-free withdrawals in retirement
✅ No required minimum distributions (RMDs) for the original owner
But if you live in Israel — or plan to make aliyah — the story changes.

Here’s the Catch:
Israel does not automatically recognize Roth IRAs as tax-free.
In fact, Israeli tax authorities MAY treat a Roth IRA as just another foreign investment account, not a retirement plan. That opens the door to:
📌 Taxes on gains — even if you haven’t touched the money
📌 Potential taxation of withdrawals
📌 Mandatory foreign asset reporting (think FBAR/5471 equivalents)

And if you leave a Roth IRA to your heirs in Israel? The situation gets even murkier.
➡️ Israeli law doesn’t treat Roth IRAs as inheritances or pensions.
➡️ Heirs could face double taxation, or years of legal limbo just trying to claim the funds.

📜 What Does Israeli Tax Law Actually Say?
Spoiler: Not much — and that’s a problem.
There’s no formal Israeli tax authority position on Roth IRAs. This legal gray zone leaves room for:
⚖️ Conflicting interpretations
⚖️ Unpredictable audits
⚖️ Unpleasant surprises
Some Israeli accountants report that the default assumption is: Roth IRAs are taxable, unless the taxpayer can prove otherwise.

🤔 Why This Matters
If you’ve made aliyah, are an Israeli resident, or have heirs who live in Israel, this uncertainty could mean the difference between zero tax and a massive tax bill on your U.S. retirement savings.

🔍 What Can You Do?

Start by reviewing:
*Who is your beneficiary?
*How is your Roth IRA structured?
*Can you document its tax-free nature under U.S. rules — and justify that under Israeli law?

🧠 Planning ahead is key. In the next few post, we’ll review the different options.

22/04/2025

The Big Picture – Inheritance & Taxes Across Borders

🧾 Think You're Leaving a Financial Gift? It Might Be a Tax Burden.

Many American living in Israel have family in the U.S. — parents, siblings, children — and assume that U.S. tax rules will carry over when they receive an inheritance. But when U.S. retirement accounts like IRAs or Roth IRAs are involved, that assumption can cost thousands in unexpected taxes.

In the U.S., these accounts are generally tax-advantaged. But in Israel, their status is… not so clear.

➡️ Some inheritances are taxable in Israel, depending on where the money is held, who the heirs are, and whether they've made aliyah.
➡️ And while the U.S. might not tax your heirs again, Israel might — especially if the account was never declared or taxed here before.

This isn’t just a Roth IRA problem — it’s a cross-border planning problem.

Smart families need to plan across both systems.

Over the next few weeks, we’ll be breaking this down:
📌 What Israeli tax law says about Roth IRAs
📌 Who should be your beneficiary (and who shouldn’t)
📌 What to consider if your heirs live in different countries
📌 How the 10-year aliyah exemption could help — or hurt

👉 Follow along if you have family, assets, or accounts in both countries

08/04/2025

Finding Your Financial Freedom This Passover

As we gather around the Seder table to celebrate Passover, we reflect on the miraculous journey from bo***ge to freedom. The exodus story reminds us that liberation often requires both faith and guidance through challenging terrain.

At MasAmerica, we see similar themes in the financial journeys of US expats in Israel. While tax complexities may not be the Red Sea, they can certainly feel like formidable obstacles on your path to financial peace of mind.

Insights from Our "Key Issues for US Retirees in Israel" Events

Our recent series of intimate gatherings brought together experts dedicated to guiding Americans in Israel:
🔹Steven Ettinger (Tax Lawyer & CEO, MasAmerica)
🔹Ariel Katz (Director & CPA, MasAmerica)
🔹Norman Chait (Managing Principal, Nardiv Advisors)

Wisdom for Your Journey

Just as the Passover story imparts timeless wisdom, our experts shared valuable insights:

💡 Freedom from Unnecessary Burdens: As an Israeli resident, you may be exempt from US Social Security tax – knowledge that brings immediate relief
💡 Making the Most of Your Resources: Roth IRA owners should consider utilizing these assets within your first 10 years of Aliyah or designating them to your children
💡 Simplifying Your Path: Consolidate your assets with one custodian for better oversight
💡 Timing Your Blessings: Consider delaying Social Security benefits until age 70 if possible

The Power of Partnership

The Passover story teaches us that liberation is a communal journey. Similarly, navigating complex financial matters requires collaboration.

At MasAmerica, we value our partnerships with trusted professionals like Nardiv Advisors. Together, we ensure nothing falls between the cracks, providing comprehensive guidance for your unique situation.

This Passover, as you celebrate freedom from bo***ge, consider how MasAmerica can help free you from financial uncertainty.

Chag Pesach Sameach from all of us at MasAmerica!

Contact us to learn how our US-Israel tax expertise can help you achieve your own financial liberation. 073-769-0600

27/03/2025

This week, MasAmerica (with Steven Ettinger) and Nardis Advisors (led by Norman Chait) hosted our "Key Issues for US Retirees in Israel" educational events - and the response was overwhelming! Due to high demand, we expanded from 3 to 5 sessions, each packed with critical information for US expats navigating complex financial landscapes.

Our intimate sessions explored crucial topics, including:

*Navigating tax implications for those splitting time between the US and Israel

*Understanding correct state tax obligations for overseas residents

*Managing estate and inheritance complexities

*Discussing social security taxation for expats

Investment Strategies Spotlight:

💡 Simplifying Investment Portfolios

💡 Developing a Strategic Social Security Approach

💡 Consolidating Assets with a Single Custodian

Key Takeaways That Could Transform Your Financial Planning:

✅ Work with a local US CPA who specializes in Israeli resident tax issues

✅ Understand the nuanced treatment of financial instruments like Roth IRAs in Israel

✅ Ensure you have a legally valid will in Israel

✅ Streamline your investment approach for maximum efficiency and clarity

We're passionate about empowering US expats with the knowledge they need to make informed financial decisions. A special thank you to everyone who participated and asked such insightful questions!

Interested in learning more? Reach out to schedule a consultation with our expert team. Call us at 073-769-0600

24/03/2025

Yesterday I had the privilege of attending Finnegan Forward’s breakfast seminar in Tel Aviv in celebration of International Women’s Month! The panel, featuring trailblazing women leaders, highlighted how they are breaking barriers in business, tech, and intellectual property—owning their success and reshaping industries.

A special thank you to ACC and Women in Tech for co-sponsoring, to Finnegan’s Managing Partner Erika Arner for making her first visit to Israel, to Yonina Eldar, Anat Tsour, Tammy Gilon and Maya Kanter for inspiring us. And of course the incredible Nili Philipp for moderating such an inspiring discussion.

At MasAmerica, we see this same drive and ambition in the clients we serve—business leaders, entrepreneurs, and investors navigating the complexities of U.S.-Israel financial structures. Whether it’s scaling a company, investing in U.S. real estate, or managing cross-border tax strategy, we ensure our clients' financial success keeps pace with their professional achievements.

Just as these women are shaping the future of business, we’re here to help shape their financial future. Because when barriers are removed, opportunities become limitless.

20/03/2025

Spring Cleaning: From Passover to Tax Returns

As Passover approaches and tax season reaches its peak, I've been reflecting on the unexpected parallels between these two annual rituals.
Preparing for Passover involves a meticulous search for chametz (leavened products) in every corner of our homes. We open drawers that haven't been touched in months, move furniture to clean underneath, and examine places we normally overlook.

Similarly, preparing our taxes requires us to hunt through financial records, gather receipts from forgotten purchases, and account for every transaction from the past year.

Both processes demand attention to detail and thoroughness. Both ask us to take stock of what we have, what we've accumulated, and what we need to address. And both offer a sense of renewal when completed—a fresh start, whether financial or spiritual.

There's something powerful about these annual rituals of accounting, whether we're accounting for the bread in our pantries or the dollars in our bank accounts. They remind us to pay attention to the details of our lives that we might otherwise neglect.

As I tackle both these tasks this spring, I'm trying to approach them not just as obligations, but as opportunities for reflection and renewal. What about you? Do you see connections between these seemingly different spring traditions?

Let MasAmerica help you with your spring tax cleaning :) Call us at 073-769-0600

16/03/2025

Happy Shushan Purim!

During Friday and today's Megillah reading, we all made noise to drown out Haman's name - but have you ever noticed how many people also make noise when the word "tax" is mentioned in the first verse of the last chapter? "וישם המלך אחשורוש מס על הארץ ואיי הים"

It's no surprise - nobody enjoys paying taxes!

This always reminds me of my father, a successful businessman. Whenever he would complain about his tax burden, his accountant would wisely respond: "Mr. Rothschild, if you don't want to pay taxes, no problem! Just give me the profits from your business, and I'll gladly pay your taxes for you!"

At MasAmerica, we understand the challenges of tax season. Our experienced team of CPAs and tax attorneys specializes in helping US citizens in Israel navigate complex filing requirements while identifying legitimate tax-saving opportunities.

Don't let taxes spoil your Purim joy! Contact MasAmerica today to turn your tax headaches into solutions. 073-769-0600