Question 1

What is a QEF-eligible fund?

Accepted Answer

A Qualified Electing Fund (QEF) eligible fund provides annual PFIC statements allowing US investors to elect QEF treatment, which enables preferential capital gains tax rates instead of punitive ordinary income rates on PFIC distributions.

Question 2

Can I invest in Portugal Golden Visa funds through my IRA or 401k?

Accepted Answer

Yes, QEF-eligible Portugal Golden Visa funds can be held in US retirement accounts with proper structuring. The QEF election simplifies tax reporting and eliminates the complex interest charges that typically apply to PFIC investments.

Question 3

What are the tax benefits of QEF election?

Accepted Answer

QEF election provides long-term capital gains treatment (15-20% tax rates instead of up to 37%), eliminates interest charges on deferred gains, simplifies Form 8621 filing, and makes funds suitable for tax-deferred retirement accounts.

IRA & 401k Eligible Portugal Golden Visa Funds | QEF-Elig...