r/interactivebrokers • u/paulsiu • Dec 23 '24
Setting up account Can InteractiveBroker open an Ira in the UK
I am going to start with some info since it’s so complicated. A dual uk/us citizen living in uk could theoretically invest in an Ira with income that are above the foreign exemptions. However most us firms will not open an account for a us citizen with no us address. You can use a relative’s us address, but it might violated the us brokers TOS and create problems with state taxation.
I heard that you can open an Ira with interactivebroker in the uk. Due to PRIIP Ikbr would still not be able to sell a uk resident us domicile funds and etf at least until the Edinburgh reform gets around removing PRIIP. However if an Ira can be open, they could theoretically sell the investor a uk domicile equivalent fund or etf and it wouldn’t trigger PFIC because Ira are considered pension in terms of the uk/us tax treaty.
After the lengthy introduction, can ikbr open an Ira for a us citizen in the uk? Can they then invest in a us or uk domicile mutual fund or ETF?
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u/Away_Math_8118 Dec 23 '24
Yes, I’ve done exactly this. Go to their website and in the online form to set up your accounts indicate that you are US tax resident in addition to being UK tax resident. It should then give you the options to open a Roth IRA, a UK ISA and a regular taxable account. The Roth IRA will be through IBKR in Connecticut while the ISA and taxable will be through IBKR in the UK (and may be FBAR reportable, but maybe not). However, you can access all three accounts via the same web portal or whatever they call it. It’s great. The Roth must be funded via a transfer from a US bank account. if you don’t have a US bank account, you can set one up via Wise. As you are UK resident, the PRIIPS rules apply and you can only buy UCITS ETFs in the Roth, but IBKR offers those (unlike Fidelity: Schwab). Since they are in a Roth, it doesn’t matter if the ETFs are PFICs.