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View Full Version : Retiring in the USA for non residents ?


Allan Oakley
04-25-2006, 01:39 AM
Prior to 1996 if you were a non resident - villa owner you could easily ask for and recieved a SS number by arguing you wanted to pay income taxes on your profits.It said " not valid for employment" but all the same was a legitimate number. I recently heard that ANYONE who has paid in to Social Security for 10 years could apply for a retirement pension at 65 years of age.Then by accident I met a Brit who has been here 19 years, owns his own business ,applied for and is recieving his old age pension.
How was that possible ?

Felt inquisitive so I called the Social Security department. While on hold I researched their website and found this :
Can a non-citizen receive Social Security benefits?

Question
Can a non-citizen receive Social Security benefits?

Answer
Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, permits payment of Social Security benefits to noncitizens living in the United States (U.S.) only if they are lawfully present in this country. The law requires that anyone living in the U.S. who applies for Social Security benefits on or after December 1, 1996, must provide evidence that he or she is a U.S. citizen or U.S. national, or an alien lawfully present in the U.S. as determined by the Attorney General.This law does not affect:· Social Security benefits for people residing outside the U.S.; · Social Security benefits for people who applied before December 1, 1996; or · Entitlement to the lump sum death payment.For more information, you may call our toll-free number, 1-800-772-1213. Our representatives there will be glad to help you.If you live outside the U.S., see http://www.socialsecurity.gov/foreign/ for information on services in other countries. If you reside in the United States you can apply for benefits online at http://www.socialsecurity.gov/applyforbenefits. You can find more information about whether you can receive benefits abroad as a non-U.S. citizen in the booklet, Your Payments While You Are Outside the United States (SSA Publication No. 05-10137) at http://www.socialsecurity.gov/pubs/10137.html.

Armed with this information I asked for a specialist who deals with immigration and social security. She admitted that prior to 1996 anyone who had a profit generating investment asked for and received a SS number. Between then and about 2002 the Federal government started insisting that foreigners who became US business buyers apply for ITIN numbers. I asked her whether there was the possibility that foreigners who came here on E-2 visas before 1996 and had SS numbers marked " not valid for employment" could actually be collecting SS benefits? She said that was not possible but I pointed out the act says that SS benefits can be paid to :
Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, permits payment of Social Security benefits to noncitizens living in the United States (U.S.) only if they are lawfully present in this country. The law requires that anyone living in the U.S. who applies for Social Security benefits on or after December 1, 1996, must provide evidence that he or she is a U.S. citizen or U.S. national, or an alien lawfully present in the U.S. as determined by the Attorney General.

She paused and then said I may be right. Foreign business owners with older SS cards may in fact be able to collect SS benefits. She said I was the first one to ever point that out and she has been working for SS for 19 years.
Legal or moral ? Who knows but I'd bet I discovered a flaw in the SS act that allows non USA residents to collect SS benefits as they are here legally. In this case as long as they maintain their E-2 visa it looks like they can collect the pension. Only if they were lucky enough to get a SS number back in the early to mid 1990's.

I’d love to have an actual legal opinion on this one. I/m not sure SS staff are that aware of this flaw in their set up. I sent off my request to a finacial investment expert in Altamonte Springs but if this is the case there is hope for long time E-2 Visa holders.

Grumpy
04-25-2006, 02:30 AM
Hi

Thanks for posting this very useful information

Makes interesting reading

floridapete
04-25-2006, 08:01 AM
Not quite sure that I understand clearly the connection between Alan's headline and the content of his thread.

Sure, his posting seems to indicate a (possible) loophole between the availibility of SS benefits to non-residents legally present in the USA on non-immigrant visas.

However, this does NOT mean that E2 etc. holders are free to 'retire' in the USA if they no longer own the qualifying business (i.e. if they have sold it and seek to simply 'stay' in Florida as a retiree). They would have no visa status to do so !

The immigration status question is still quite different from the SS question !

JulieC
04-25-2006, 03:01 PM
Good point, to get the benefit, you would no longer be working and if you are not worlking on a non immigrant visa, you are out anyway so it is a bit catch 22. Can we claim medicare would be more interesting? I think you need a green card to do so but dont know chapter and verse.

Allan Oakley
04-27-2006, 12:23 AM
Peter
You need to think outside the box.
The fact is that many thousands of foreign citizens have been here so long they have E-2 Visas and SS numbers. Yes on paper they can never retire but the ones I have met get around it by saying they are still working even though a relative may now be the legal owners or managers of their business. They generate a ' paper ' salary but plow it back in to the business. As a result they qualify for SS old age benefits after paying 10 years in taxes and SS to the American government.

The case I encountered has the E-2 holder in the office a few hours a week shuffling paper but getting a full salary that goes in his bank. A few weeks later he then transfers back most of his unerned profits back in to the business for his son who is the business partner in the MC. This individual moved here 19 years ago and now at 65 applied for an recieves his US old age pension. In conclusion: he on paper is working full time but in reality spends a few hours a week keeping his son in line. Remember that in America you can own and operate a business till you die. This strategy satisfies the E-2 Visa requirements and it perfectly legal.

JulieC
04-27-2006, 04:27 AM
This plan necessitates having a son who is also an E2 holder and wishes to work in your business. Personally if I were still on E2 I would want my son to get a masters degree, a profession, a H1b, green card and then citizenship . If I thought he would be working my business in ten years time so that I could "retire" and still legally stay here, I would go home now. E2 should never be something that self perpetuates in families. It goes nowhere and I would not wish my son to go nowhere.

Susie
07-16-2006, 05:21 AM
Hi

It appears that when I am 60 I will be entitled to a pension in the USA if still here.

Up till now I have not received a salary or paid any contributions in the USA but entitiled to claim a pension as my husband has paid so much into the system

Bobby
07-16-2006, 01:45 PM
Reading through the thread again, I think it's good information to have if it suits an individual's overall case.

I think you're taking it a bit too personally Julie, and what may be right for someone else may not be right for you. Of course.

The information was posted as general information for anyone who finds themselves in a position to use it, which is great. We learn about a loophole.

We should thank Allan for researching and bringing this info to the forum instead of dissecting it.

Obviously the loophole has been used successfully by someone that Allan knows and you can see exactly how it could be used in future. I think it's beneficial information for all.

Bobby

DavidL
07-16-2006, 04:04 PM
Hi

It appears that when I am 60 I will be entitled to a pension in the USA if still here.

Up till now I have not received a salary or paid any contributions in the USA but entitiled to claim a pension as my husband has paid so much into the system

Strangely, we also have had our Social Security Statements come through. It comes through on form SSA-7005-SM-SI.

DavidL
07-16-2006, 05:11 PM
Hi

It appears that when I am 60 I will be entitled to a pension in the USA if still here.

Up till now I have not received a salary or paid any contributions in the USA but entitiled to claim a pension as my husband has paid so much into the system

Just been thinking about this again.

Depending on your business vehicle and whether you take salary or distributions will have an effect on any possible pension entitlement, or rather, amount of any pension.