Grenville

With apologies up front if there is another thread on this topic (I couldn't find one but perhaps didn't look hard enough).

I have been based in the U.S. for 12 years now but still have pensions (defined contribution) in the UK. One is with an ex-employer and the other is with a well-known financial institutio that is willing and able to hold my pension with the various FATCA-related reporting requirements that go along with it. The problem is that this firm only offers rather high-cost and somewhat limited fund options.

Does anyone know if any of the large firms in the UK (Vanguard, Fidelity, etc. - any that offer low (or lower) cost fund options) are willing and able to take on the UK-based DC pension assets of a U.S.-resident UK citizen?

By the way, I have checked out the QROPS structure for U.S.-based UK citizens and am not yet convinced of its merits or validity in the context of current U.S. tax law so that isn't an option for me right now. I really just want to keep my pension assets in the UK but move them to a lower-cost provider that can still fulfill its FATCA reporting obligations to the U.S.

All suggestions gratefully received.

Thanks!

john in oz

Our UK Affiliate UK Pension Adviser will be able to provide you some guidance on this for you. I have PM you with his email.

Most American Retirement Funds can not accept UK pension transfers simply because they allow the release of funds for other non retirement purposes such as to assist with the purchase of a home. Post 6th April 2015, I would doubt that many if any funds would remain compliant under the new rules.

Grenville

Thanks very much!

Robert Pilcher

I'm a Brit living in Tennessee. How would I go about getting my state pension xferred to the US (if possible) I'm not of retirement age for 15 years. I did work for much of my adult like back in the UK so I must have contributed through ITax over the years, Any help would be much appreciated

john in oz

State Pensions can not be transferred as a lump sum. If you draw down a state pension then it is normally paid into a UK bank account and then you make individual arrangements to transfer or access those funds from your UK account. :-)

Robert Pilcher

Thanks John. Hopefully the dollar will be weak again when I'm ready. The 2.15 dollar to pound will suit me just fine :-)

john in oz

Happy to help :-)

nun

You cannot transfer UK pension funds to US pensions funds. The IRS won't allow it. Also I would not consider a QROPS because of the cost and the potential for US taxes on the transfer if you are a US resident. Do not listen to the QROPS firms that say it is ok....they want your money are you have to deal with any tax issues.

So if you have UK pensions leave them in the UK, but make sure you are in a good plan. A transfer to another UK pension has no US or UK tax implications.

As far as UK state pension is concerned, if you are a UK expat see if you qualify to pay Class 2 voluntary NICs. You will need 35 years of contributions to qualify for full state pension if you retire after 6th April 2016. HMRC will direct deposit the state pension into a US bank without any withholding tax. If you qualify for the UK personal exemption and your UK source income is less than you won't be liable to any UK tax. If it is larger you should file a US-Individual-2002 with the IRS, who will forward it to HMRC and you can claim exemption from UK tax on the pension under the tax treaty.