Retirement isn’t the end of the road—it’s a new beginning, a new chapter in life where people start enjoying lives of leisure, and need their accumulated savings more than ever. For US citizens or Green Card holders living in Israel, retirement is a crucial junction regarding taxation, requiring consideration of both countries’ tax and pension laws, and the existing tax treaty between them.

Due to the different tax systems in Israel and the US, lifelong savings can be significantly affected if not planned for in advance. For example, in Israel, deposits to provident funds, pensions, and study funds (short term tax free saving plan) are not taxed at the time of deposit, while in the US, an additional tax liability may arise because the IRS may consider them taxable income. Similarly, withdrawing funds from provident funds, pensions, severance pay, and study funds in Israel is usually tax-exempt or subject to reduced tax, while in the US, it will be considered taxable income.

Our team of experts has an in-depth understanding of the tax implications of both the Israeli and US tax systems. We provide comprehensive advice and build a personalized retirement plan that considers financial, tax, and pension aspects. It is recommended to start the consultation process about a year before retirement. The consultation is conducted jointly with your personal pension advisor, and if necessary, also in cooperation with an expert from the Israeli tax department, to formulate an optimal strategy for your retirement. Tax planning before retirement prevents unpleasant surprises, preserves the value of savings, and helps you maintain financial stability in this new chapter of life.