IRA access to funds when moving to UK
Oct 19th 2017, 2:24 am
#1
Forum Regular
Thread Starter
Joined: Dec 2016
Location: Ex North Carolina, now in Yorkshire
Posts: 96
IRA access to funds when moving to UK
Nest question please. Your advice is welcome and appreciated.
Before returning to the UK from the US we want to get all our ducks in a row. We have been told conflicting stories by various IRA custodians. Some say we can access our funds easily by transfer to a UK bank but when we read the small print it says we must have a US address, which we won’t have when we sell and move. I trade the stock market so was thinking of transferring our IRA’s to Charles Schwab. They said it’s okay and no problem and they have a global team. Then I read they won’t let you earn any interest on sums not invested in the market, i.e. when I’m out of the market. I believe they call it ‘sweeping the funds’ to an interest bearing account. I’m so confused as to where to invest the IRA’s before we leave because I don’t want to leave them in a dormant account earning zero when I’m not in a position to trade. These things need to earn interest.....even though it’s a pathetic amount!
Bottom line, can anyone advise me of a good place to stash the IRA’s so they are accessible from the UK (via transfers from US to a UK bank), if I’m not trading for a while. A safe place which permits a UK address with easy access to transferring funds overseas. Thank you for any advice you can offer.
Before returning to the UK from the US we want to get all our ducks in a row. We have been told conflicting stories by various IRA custodians. Some say we can access our funds easily by transfer to a UK bank but when we read the small print it says we must have a US address, which we won’t have when we sell and move. I trade the stock market so was thinking of transferring our IRA’s to Charles Schwab. They said it’s okay and no problem and they have a global team. Then I read they won’t let you earn any interest on sums not invested in the market, i.e. when I’m out of the market. I believe they call it ‘sweeping the funds’ to an interest bearing account. I’m so confused as to where to invest the IRA’s before we leave because I don’t want to leave them in a dormant account earning zero when I’m not in a position to trade. These things need to earn interest.....even though it’s a pathetic amount!
Bottom line, can anyone advise me of a good place to stash the IRA’s so they are accessible from the UK (via transfers from US to a UK bank), if I’m not trading for a while. A safe place which permits a UK address with easy access to transferring funds overseas. Thank you for any advice you can offer.
Oct 19th 2017, 8:39 am
#2
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Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: IRA access to funds when moving to UK
I can only tell you what I did, I'm sure there are plenty of options.
I consolidated all of our accounts to Vanguard, we each have an IRA and a Roth IRA plus an after-tax brokerage account. We put the after-tax account in my wife's name only as we file as individuals in the UK and I have private pensions so it is more tax efficient to have the after-tax dividends and capital gains in her name only. We also, in that after-tax account, moved the money from mutual funds to Vanguard ETFs which are "HMRC Reporting".
We had to complete a W-9 and send that to Vanguard because we are non-residents in the USA. Without the W-9 Vanguard would withhold 20% tax on distributions which we would have to claim on our US tax return.
We can buy and sell, do Roth conversions etc just as if we were US resident. We do earn interest from the sweep accounts but in fact once dividends etc are paid into the sweep account of the after-tax account I simply transfer it to our US bank, and then use Transferwise to move it to our UK bank as we are retired and living off US pensions and the after-tax account.
I also have a US Skype number for receiving calls from US banks plus it is our 2nd factor verification number with Vanguard.
I believe that we may be restricted to creating new accounts within Vanguard as non-residents which is why we set it all up the way we wanted it before leaving the USA.
I consolidated all of our accounts to Vanguard, we each have an IRA and a Roth IRA plus an after-tax brokerage account. We put the after-tax account in my wife's name only as we file as individuals in the UK and I have private pensions so it is more tax efficient to have the after-tax dividends and capital gains in her name only. We also, in that after-tax account, moved the money from mutual funds to Vanguard ETFs which are "HMRC Reporting".
We had to complete a W-9 and send that to Vanguard because we are non-residents in the USA. Without the W-9 Vanguard would withhold 20% tax on distributions which we would have to claim on our US tax return.
We can buy and sell, do Roth conversions etc just as if we were US resident. We do earn interest from the sweep accounts but in fact once dividends etc are paid into the sweep account of the after-tax account I simply transfer it to our US bank, and then use Transferwise to move it to our UK bank as we are retired and living off US pensions and the after-tax account.
I also have a US Skype number for receiving calls from US banks plus it is our 2nd factor verification number with Vanguard.
I believe that we may be restricted to creating new accounts within Vanguard as non-residents which is why we set it all up the way we wanted it before leaving the USA.
Oct 19th 2017, 3:03 pm
#3
Forum Regular
Thread Starter
Joined: Dec 2016
Location: Ex North Carolina, now in Yorkshire
Posts: 96
Re: IRA access to funds when moving to UK
I can only tell you what I did, I'm sure there are plenty of options.
I consolidated all of our accounts to Vanguard, we each have an IRA and a Roth IRA plus an after-tax brokerage account. We put the after-tax account in my wife's name only as we file as individuals in the UK and I have private pensions so it is more tax efficient to have the after-tax dividends and capital gains in her name only. We also, in that after-tax account, moved the money from mutual funds to Vanguard ETFs which are "HMRC Reporting".
We had to complete a W-9 and send that to Vanguard because we are non-residents in the USA. Without the W-9 Vanguard would withhold 20% tax on distributions which we would have to claim on our US tax return.
We can buy and sell, do Roth conversions etc just as if we were US resident. We do earn interest from the sweep accounts but in fact once dividends etc are paid into the sweep account of the after-tax account I simply transfer it to our US bank, and then use Transferwise to move it to our UK bank as we are retired and living off US pensions and the after-tax account.
I also have a US Skype number for receiving calls from US banks plus it is our 2nd factor verification number with Vanguard.
I believe that we may be restricted to creating new accounts within Vanguard as non-residents which is why we set it all up the way we wanted it before leaving the USA.
I consolidated all of our accounts to Vanguard, we each have an IRA and a Roth IRA plus an after-tax brokerage account. We put the after-tax account in my wife's name only as we file as individuals in the UK and I have private pensions so it is more tax efficient to have the after-tax dividends and capital gains in her name only. We also, in that after-tax account, moved the money from mutual funds to Vanguard ETFs which are "HMRC Reporting".
We had to complete a W-9 and send that to Vanguard because we are non-residents in the USA. Without the W-9 Vanguard would withhold 20% tax on distributions which we would have to claim on our US tax return.
We can buy and sell, do Roth conversions etc just as if we were US resident. We do earn interest from the sweep accounts but in fact once dividends etc are paid into the sweep account of the after-tax account I simply transfer it to our US bank, and then use Transferwise to move it to our UK bank as we are retired and living off US pensions and the after-tax account.
I also have a US Skype number for receiving calls from US banks plus it is our 2nd factor verification number with Vanguard.
I believe that we may be restricted to creating new accounts within Vanguard as non-residents which is why we set it all up the way we wanted it before leaving the USA.
