Abroad in America
As a non-US citizen living and working in the United States, you face many new challenges when it comes to learning and understanding a completely new financial and tax system. Pension plans, taxation of income (both here and abroad), and investments, along with retirement accounts and estate planning considerations, can seem overwhelming. This often leads to inaction and mistakes. The goal of this podcast is to help non-US citizens and cross-border families living and working in America implement effective strategies to take full advantage of the opportunities to create wealth offered to you in the United States, both while you are in America and even once you have left. Sit back and listen as you go behind the scenes with financial planner, author, and speaker Jimmy Miller to learn how to make your time in America as financially rewarding as possible. Be sure to subscribe so you don't miss out on any future episodes. Visit https://www.BaobabWealthAbroad.com for more information and free resources.
Abroad in America
What Totalization Agreements Do
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There’s an important rule that affects many expats working in the United States — and most people have never heard of it.
In this episode of Abroad in America, we break down totalization agreements, the treaties between the U.S. and certain countries that coordinate Social Security systems. These agreements help prevent expats from paying Social Security taxes to two countries at the same time and can protect future retirement benefits.
If you’re working in the U.S. on assignment, planning an international move, or splitting your career between countries, understanding how these agreements work can save you money and prevent costly mistakes.
We explain how the rules determine which country’s system you pay into, when temporary assignments may qualify for exemption from U.S. Social Security tax, and why a Certificate of Coverage is often the key document that makes everything work correctly.
You’ll also learn how totalization agreements can help combine work credits across countries so you can qualify for retirement benefits even if you haven’t worked long enough in just one system.
In this episode, we cover:
- What totalization agreements are and why they exist
- How they help prevent double Social Security taxation
- The difference between permanent work and temporary assignments
- Why a Certificate of Coverage matters
- What happens if your home country doesn’t have an agreement with the U.S.
- How work credits in two countries can sometimes be combined
- Why this is a key piece of expat financial planning
For expats, Social Security rules can feel confusing and overwhelming. Totalization agreements are one area where the system is actually designed to make things fairer and more manageable.