Tax Playbook · Investment tax wins
Hold international funds in taxable
International funds pay taxes to other countries, and you can get a credit for that tax — but only in a regular taxable account. In a 401(k) or IRA, that credit is lost forever. Example: if your fund had $70 of foreign tax withheld, a taxable account gets the $70 back as a credit while a retirement account gets nothing. This is one reason to keep international funds in taxable.
Good for: Investors holding international stock funds.
Learn the basics
Recent articles & guides
- Taxes for Expats — Form 1116 guide (Sep 2026)
- TurboTax — foreign tax credit guide
- Bogleheads — foreign tax credit wiki
- Bogleheads forum — where to hold international stock (2024)
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Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.