Transferring UK pension to US 401K!
#1
Forum Regular
Thread Starter
Joined: May 2011
Posts: 36
Successfully transferring UK pension to US 401K??
Hi,
Does anyone have any positive experience with transferring their pension from the United Kingdom to an America 401K scheme?
I'm in the process of trying to succeed with this!
I am British and my wife is American, we live in Washington State.
When speaking with my UK pension broker they have explained that in order to transfer my plan to the US I have to find a Qualifying Recognized Overseas Pension Scheme or QROPS.
My wife's 401K is with Fidelity Investment and having spoken with them I've been told they are not able to oblige, citing UK/US policy and exchange rates being problematic.
I am positive this CAN be achieved but the method to this madness is something I have not figured out yet. Unlike the US, the UK will not permit policy holders to distribute part or all of their funds (even with high penalties) until retirement age, so its not as if I can even liquidate it and then transfer the funds overseas.
Nor will, from what I can gather, existing US 401K providers allow a husband to incorporate theirs with a wife's current policy.
Can anyone provide some hope here? - internet searches do provide sites with companies allegedly being able to help but they seem less than legally legitimate
Many thanks,
P
Does anyone have any positive experience with transferring their pension from the United Kingdom to an America 401K scheme?
I'm in the process of trying to succeed with this!
I am British and my wife is American, we live in Washington State.
When speaking with my UK pension broker they have explained that in order to transfer my plan to the US I have to find a Qualifying Recognized Overseas Pension Scheme or QROPS.
My wife's 401K is with Fidelity Investment and having spoken with them I've been told they are not able to oblige, citing UK/US policy and exchange rates being problematic.
I am positive this CAN be achieved but the method to this madness is something I have not figured out yet. Unlike the US, the UK will not permit policy holders to distribute part or all of their funds (even with high penalties) until retirement age, so its not as if I can even liquidate it and then transfer the funds overseas.
Nor will, from what I can gather, existing US 401K providers allow a husband to incorporate theirs with a wife's current policy.
Can anyone provide some hope here? - internet searches do provide sites with companies allegedly being able to help but they seem less than legally legitimate
Many thanks,
P
#2
Lost in BE Cyberspace
Joined: May 2010
Location: San Diego, California
Posts: 9,618
Re: Successfully transferring UK pension to US 401K??
Hi,
Does anyone have any positive experience with transferring their pension from the United Kingdom to an America 401K scheme?
I'm in the process of trying to succeed with this!
I am British and my wife is American, we live in Washington State.
When speaking with my UK pension broker they have explained that in order to transfer my plan to the US I have to find a Qualifying Recognized Overseas Pension Scheme or QROPS.
My wife's 401K is with Fidelity Investment and having spoken with them I've been told they are not able to oblige, citing UK/US policy and exchange rates being problematic.
I am positive this CAN be achieved but the method to this madness is something I have not figured out yet. Unlike the US, the UK will not permit policy holders to distribute part or all of their funds (even with high penalties) until retirement age, so its not as if I can even liquidate it and then transfer the funds overseas.
Nor will, from what I can gather, existing US 401K providers allow a husband to incorporate theirs with a wife's current policy.
Can anyone provide some hope here? - internet searches do provide sites with companies allegedly being able to help but they seem less than legally legitimate
Many thanks,
P
Does anyone have any positive experience with transferring their pension from the United Kingdom to an America 401K scheme?
I'm in the process of trying to succeed with this!
I am British and my wife is American, we live in Washington State.
When speaking with my UK pension broker they have explained that in order to transfer my plan to the US I have to find a Qualifying Recognized Overseas Pension Scheme or QROPS.
My wife's 401K is with Fidelity Investment and having spoken with them I've been told they are not able to oblige, citing UK/US policy and exchange rates being problematic.
I am positive this CAN be achieved but the method to this madness is something I have not figured out yet. Unlike the US, the UK will not permit policy holders to distribute part or all of their funds (even with high penalties) until retirement age, so its not as if I can even liquidate it and then transfer the funds overseas.
Nor will, from what I can gather, existing US 401K providers allow a husband to incorporate theirs with a wife's current policy.
Can anyone provide some hope here? - internet searches do provide sites with companies allegedly being able to help but they seem less than legally legitimate
Many thanks,
P
He has never been able to find a way/and or US company who can assist with this.
#3
Re: Transferring UK pension to US 401K!
Good luck though. It's been the holy grail on numerous past posts...so if you do figure it out, I'm sure a lot of other people will be very grateful.
#4
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Joined: Mar 2008
Location: Santa Cruz, CA
Posts: 4,913
Re: Transferring UK pension to US 401K!
It can't be done - 401k plans are set up under the US tax code as a retirement savings plan with deferred taxation - contributions to them come from pre-tax income (and are subject to an annual limit), income generated from the investments in the plan is not taxed at the time that it is accrued, and withdrawals from the plan after retirement age are taxed as ordinary income.
There is no provision for injecting lump sums of money from any source into a 401k plan.
There is no provision for injecting lump sums of money from any source into a 401k plan.
#5
Re: Transferring UK pension to US 401K!
I'll just reiterate the other posts.
You cannot transfer a UK pension to a US 401k as the IRS does not recognize QROPS
You cannot transfer a UK pension to a US 401k as the IRS does not recognize QROPS
Last edited by nun; Feb 8th 2012 at 2:22 am.
#6
Forum Regular
Thread Starter
Joined: May 2011
Posts: 36
Re: Transferring UK pension to US 401K!
To talk with and hear the responses from my UK pension broker regarding transferring to another scheme overseas you'd think they do it daily and with complete success. Oh yes sir, simply find a fund which is QROPS approved, we will liaise with them and in around a month to six weeks it can be facilitated.
I will talk with them tomorrow and see if they can actually provide me with the name of a firm they HAVE exchanged to the US.......
Anyhow. Again thanks.
#7
Re: Transferring UK pension to US 401K!
Why do you want to transfer the pension in the first place? The UK/US tax treaty will allow you to keep all gains tax deferred until you take income.
I will be in the reverse position to you of having US retirement accounts and living in the UK eventually. I have never considered moving them to the UK because there isn't a mechanism for doing it and also because I don't seen the need.
I will be in the reverse position to you of having US retirement accounts and living in the UK eventually. I have never considered moving them to the UK because there isn't a mechanism for doing it and also because I don't seen the need.
Last edited by nun; Feb 8th 2012 at 6:46 pm.
#8
Heading for Poppyland
Joined: Jul 2007
Location: North Norfolk and northern New York State
Posts: 14,452
Re: Transferring UK pension to US 401K!
It can't be done - 401k plans are set up under the US tax code as a retirement savings plan with deferred taxation - contributions to them come from pre-tax income (and are subject to an annual limit), income generated from the investments in the plan is not taxed at the time that it is accrued, and withdrawals from the plan after retirement age are taxed as ordinary income.
There is no provision for injecting lump sums of money from any source into a 401k plan.
There is no provision for injecting lump sums of money from any source into a 401k plan.
#9
Forum Regular
Thread Starter
Joined: May 2011
Posts: 36
Re: Transferring UK pension to US 401K!
Why do you want to transfer the pension in the first place? The UK/US tax treaty will allow you to keep all gains tax deferred until you take income.
I will be in the reverse position to you of having US retirement accounts and living in the UK eventually. I have never considered moving them to the UK because there isn't a mechanism for doing it and also because I don't seen the need.
I will be in the reverse position to you of having US retirement accounts and living in the UK eventually. I have never considered moving them to the UK because there isn't a mechanism for doing it and also because I don't seen the need.
I want to transfer the funds because I want to liquidate the pension, with penalties of course, as the money is needed.
#10
Re: Transferring UK pension to US 401K!
If you need the money why would you want to transfer it to a US retirement account with it's penalties and limits on withdrawals? even if you could.
#12
Account Closed
Joined: Mar 2004
Posts: 2
Re: Transferring UK pension to US 401K!
For what it is worth I received an offer that is being made by a prior employer of an enhanced Transfer Value. So I call up the advisers and mention I am no longer UK resident and that is where they go errrrrrrr.
Can not be an uncommon situation with the number of Expats.
Can not be an uncommon situation with the number of Expats.
#13
Re: Transferring UK pension to US 401K!
For what it is worth I received an offer that is being made by a prior employer of an enhanced Transfer Value. So I call up the advisers and mention I am no longer UK resident and that is where they go errrrrrrr.
Can not be an uncommon situation with the number of Expats.
Can not be an uncommon situation with the number of Expats.
If you are moving to the US then for everyone except the very rich or those with access to very sophisticated tax planning it's generally best to leave UK pensions where they are. There is a treaty in place to shelter gains inside UK pension funds from US tax and avoid double taxation of income.
#14
Account Closed
Joined: Mar 2004
Posts: 2
Re: Transferring UK pension to US 401K!
There are schemes that will do a QROP for you to a place other than the US and put your pension in an "insurance wrapper" that will protect it form US taxation until you make distributions. You may be protecting your money form the IRS, but the company holding your money will charge you big fees. And anyway the UK/US tax treaty does the same thing for free.
If you are moving to the US then for everyone except the very rich or those with access to very sophisticated tax planning it's generally best to leave UK pensions where they are. There is a treaty in place to shelter gains inside UK pension funds from US tax and avoid double taxation of income.
If you are moving to the US then for everyone except the very rich or those with access to very sophisticated tax planning it's generally best to leave UK pensions where they are. There is a treaty in place to shelter gains inside UK pension funds from US tax and avoid double taxation of income.
#15
Just Joined
Joined: Feb 2012
Posts: 8
Re: Successfully transferring UK pension to US 401K??
Their is no reasonable explanation why a UK Ex Pat should not be able to transfer their Pension Investments. The Inland Revenue will allow it tax free but the IRS puts up an illogical barrier by saying UK Pensions Investments do not qualify.Yet investments in a 401k are made exactly the same as into a British Pension.
I would like the British Ex Pat web site to organize a petition on our behalf. My main reason for still wishing to transfer my investments is so that I can get away from the outrageous charges British brokers make for a trade. 5c a share one thousand equals a $100 in and out! Charles Schwab USA $16.
My Pension is held in a SIPP ios anyone doing any better on commissions?
I would like the British Ex Pat web site to organize a petition on our behalf. My main reason for still wishing to transfer my investments is so that I can get away from the outrageous charges British brokers make for a trade. 5c a share one thousand equals a $100 in and out! Charles Schwab USA $16.
My Pension is held in a SIPP ios anyone doing any better on commissions?