What happens when your retirement savings stay in America, but you move to Israel?
Many retirees feel stuck, unsure how to access their money or restructure their financial life without creating problems or additional taxes in either country. The good news is that with the right setup, your finances can support your life in Israel instead of adding stress.
Get the timing right on IRA withdrawals
One retiree I worked with was prepared to liquidate her IRA to fund her retirement in Israel. Her plan? Take it all at once and convert it to shekels. But a full withdrawal in one year would trigger a spike in taxable income, moving her into a much higher tax bracket.
I advised her to split the withdrawal over two calendar years. This one change kept her in a lower bracket, potentially saving thousands in U.S. federal taxes. If you are considering withdrawing money from a traditional IRA, timing matters.
Simplifying accounts can prevent problems
Juggling multiple U.S. and Israeli accounts, pensions, and bank logins creates unnecessary complexity. Add time zone differences and cross-border paperwork to the mix and many people find themselves overwhelmed.
I helped this new client consolidate her American accounts and transfer needed cash into her Israeli bank. This allowed her to manage everyday expenses locally without needing to wire money every time she needed it. Her finances became simpler, faster, and far less stressful.
Update your legal documents for life in Israel
Too often, I meet retirees who haven’t updated their wills or powers of attorney since making aliya. Since an American legal document may not hold up easily in Israeli courts, family members can be left powerless during a crisis.
This client took the time to set up updated Israeli legal documents and named her son as her financial decision-maker if needed. It was one of the smartest moves she made… not just for her peace of mind, but for her family’s future.
Before taking withdrawals or moving money from your U.S. retirement accounts, get guidance tailored to Americans living in Israel. Call (02) 624-2788 or sign up for a free introductory call at www.profile-financial.com/call.
Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.Profile-Financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates provide tax or legal advice.
Published February 18, 2026.