New UK State Pension
Oct 18th 2014, 10:51 am
#91
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Location: The Charente - still smiling.
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Re: New UK State Pension
Am I being slow here? It reads to me that you contribute out of TAXED income.
"To save £15,000 in a personal pension, it will only cost a basic-rate taxpayer £12,000 (higher-rate £9,000) in cash because you get the tax you paid on that income back."
I doubt it applies to me anyway as I pay tax overseas, but I am intrigued.
"To save £15,000 in a personal pension, it will only cost a basic-rate taxpayer £12,000 (higher-rate £9,000) in cash because you get the tax you paid on that income back."
I doubt it applies to me anyway as I pay tax overseas, but I am intrigued.
Oct 18th 2014, 11:10 am
#92
Was in Canada, now home.
Joined: Aug 2011
Location: Devon
Posts: 3,388
Re: New UK State Pension
There is an exception for non-taxpayers. Non taxpayers can only contribute up to 2880 p.a, but then the government will increase their contribution to 3,600.
That is mentioned in the MSE article that Rebs linked to.
That is mentioned in the MSE article that Rebs linked to.
Oct 18th 2014, 11:12 am
#93
Was in Canada, now home.
Joined: Aug 2011
Location: Devon
Posts: 3,388
Re: New UK State Pension
The situation for non taxpayers is also explained in this article:Stakeholder pensions: the cheap and simple way to invest for your retirement | This is Money
Oct 18th 2014, 11:13 am
#94
Was in Canada, now home.
Joined: Aug 2011
Location: Devon
Posts: 3,388
Re: New UK State Pension
No it doesn't apply to you. You have to be a UK non-tax payer.
Oct 21st 2014, 5:13 pm
#95
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Re: New UK State Pension
Does anyone know when the men's state pension age changes will come into force (i.e., "be legalised"?)
AFAIK, some of the women's changes are already in force (a friend's retirement age was greater than 60). However, have the men's retirement age changes (increase to 66 years, etc.) been finalised yet?
I can find information showing what the proposed new retirement age changes are, but can't find if the final stage of legislation has happened, or when it will likely happen (I mean the legislation, not what the proposals are - I already know my "new" state pension age will be 66)
May seem like an odd question, but it affects how my occupational pension contributions will be treated.
Thanks for any advice.
AFAIK, some of the women's changes are already in force (a friend's retirement age was greater than 60). However, have the men's retirement age changes (increase to 66 years, etc.) been finalised yet?
I can find information showing what the proposed new retirement age changes are, but can't find if the final stage of legislation has happened, or when it will likely happen (I mean the legislation, not what the proposals are - I already know my "new" state pension age will be 66)
May seem like an odd question, but it affects how my occupational pension contributions will be treated.
Thanks for any advice.
Oct 21st 2014, 5:38 pm
#96
Dichotomus tinker
Joined: Aug 2013
Location: Ontario, Canada
Posts: 6,678
Re: New UK State Pension
Dunroving @post#95
Just this, beginning at table 3
https://www.gov.uk/government/upload...-timetable.pdf
and this. check for updates within the link
https://www.gov.uk/government/polici...te-pension-age
Just this, beginning at table 3
https://www.gov.uk/government/upload...-timetable.pdf
and this. check for updates within the link
https://www.gov.uk/government/polici...te-pension-age
Last edited by not2old; Oct 21st 2014 at 5:44 pm.
Oct 21st 2014, 5:45 pm
#97
Was in Canada, now home.
Joined: Aug 2011
Location: Devon
Posts: 3,388
Re: New UK State Pension
Does anyone know when the men's state pension age changes will come into force (i.e., "be legalised"?)
AFAIK, some of the women's changes are already in force (a friend's retirement age was greater than 60). However, have the men's retirement age changes (increase to 66 years, etc.) been finalised yet?
I can find information showing what the proposed new retirement age changes are, but can't find if the final stage of legislation has happened, or when it will likely happen (I mean the legislation, not what the proposals are - I already know my "new" state pension age will be 66)
May seem like an odd question, but it affects how my occupational pension contributions will be treated.
Thanks for any advice.
AFAIK, some of the women's changes are already in force (a friend's retirement age was greater than 60). However, have the men's retirement age changes (increase to 66 years, etc.) been finalised yet?
I can find information showing what the proposed new retirement age changes are, but can't find if the final stage of legislation has happened, or when it will likely happen (I mean the legislation, not what the proposals are - I already know my "new" state pension age will be 66)
May seem like an odd question, but it affects how my occupational pension contributions will be treated.
Thanks for any advice.
https://www.gov.uk/government/upload...-timetable.pdf
It gives retirement ages for men and women up to those born up to April '78 who will reach retirement age at 68.
Not2Old got there ahead of me!
Oct 21st 2014, 5:53 pm
#98
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Joined: Jul 2002
Location: Dreich Alba
Posts: 12,006
Re: New UK State Pension
Dunroving @post#95
Just this, beginning at table 3
https://www.gov.uk/government/upload...-timetable.pdf
and this. check for updates within the link
https://www.gov.uk/government/polici...te-pension-age
Just this, beginning at table 3
https://www.gov.uk/government/upload...-timetable.pdf
and this. check for updates within the link
https://www.gov.uk/government/polici...te-pension-age
There are so many media stories, and even government policy statements, etc., that seem to take years to be actually statutory (or whatever term describes being "legally finalised". So what becomes "common knowledge" actually is still only a proposal for years, until the final legislation occurs This issue comes up quite often on BE when what is stated as "fact" is actually still just a government proposal of change (re: things like benefits, immigration, etc.)
I'll fill in the gaps re: why I am asking a bit later but I need to be a bit pedantic first to make sure my question is asked - which is essentially, "Is the change of my state pension age to 66 (I was born b/w 6 October 1954 – 5 April 1960) currently "in law""?
Oct 21st 2014, 6:09 pm
#99
Dichotomus tinker
Joined: Aug 2013
Location: Ontario, Canada
Posts: 6,678
Re: New UK State Pension
Dunroving @post #98
I googled state pension age in law....comes up as a Parliament press release, just need to be able to link it
I googled state pension age in law....comes up as a Parliament press release, just need to be able to link it
Last edited by not2old; Oct 21st 2014 at 7:29 pm.
Oct 21st 2014, 6:14 pm
#100
Was in Canada, now home.
Joined: Aug 2011
Location: Devon
Posts: 3,388
Re: New UK State Pension
These are not 'proposed changes'. They are already law, and that is quite clear on the links I and Not2Old have provided.
Of course, a future government might change it, though you can be sure the change will be up not down. There is going to be a review every five years.
Of course, a future government might change it, though you can be sure the change will be up not down. There is going to be a review every five years.
Oct 21st 2014, 6:19 pm
#101
Dichotomus tinker
Joined: Aug 2013
Location: Ontario, Canada
Posts: 6,678
Re: New UK State Pension
found it ...
www.parliament.uk/briefing-papers/sn06546.pdf
Sep 11, 2014 - Government legislated in the Pensions Act 2014 to bring forward the increase .......
www.parliament.uk/briefing-papers/sn06546.pdf
Sep 11, 2014 - Government legislated in the Pensions Act 2014 to bring forward the increase .......
Oct 21st 2014, 6:21 pm
#102
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Joined: Jul 2008
Posts: 1,477
Re: New UK State Pension
Forgive me I checked the Wiki but want to find info Nun provided regarding Opening Roth IRA before returning to UK.. I am in process but want to be little more educated. Typed in Roth and roth ira but nothing pops up in "Moving back to UK".. sorry
Oct 21st 2014, 6:39 pm
#103
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Joined: Aug 2013
Location: Ontario, Canada
Posts: 6,678
Re: New UK State Pension
Fulwwod @post#102
is this what you're after?
http://britishexpats.com/forum/movin...ira-uk-807343/
http://britishexpats.com/forum/usa-57/roth-ira-719734/
http://britishexpats.com/forum/usa-5...ay-tax-756318/
Roth IRA - Is It For You? | British Expats Tax LLC
is this what you're after?
http://britishexpats.com/forum/movin...ira-uk-807343/
http://britishexpats.com/forum/usa-57/roth-ira-719734/
http://britishexpats.com/forum/usa-5...ay-tax-756318/
Roth IRA - Is It For You? | British Expats Tax LLC
Oct 21st 2014, 7:36 pm
#104
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Joined: Jul 2002
Location: Dreich Alba
Posts: 12,006
Re: New UK State Pension
http://britishexpats.com/forum/movin...llover-805114/
http://britishexpats.com/forum/usa-5...rawals-807919/
http://britishexpats.com/forum/movin...lovers-807865/
Oct 21st 2014, 8:31 pm
#105
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Joined: Aug 2004
Posts: 4,754
Re: New UK State Pension
The critical thing is that a rollover is not considered a distribution for treaty purposes. That's a pretty easy idea to accept for a 401k to IRA rollover as no tax is paid, but it's not as obvious for the IRA to ROTH as you have to include the rollover amount as income on your US tax return and pay tax on it, but still when applying the treaty the rollover is not treated as a distribution and so Article 17 isn't applicable. Article 18.1 is applicable as the money is being transferred from one qualifying plan to another and so the UK does not tax the rollover. So the owner of the IRA/ROTH now just applies US domestic law and pays US tax on the rollover. That's the case if you are a US citizen/resident or an NRA living in the UK. So as long as you are rolling over into a plan covered by the treaty there is no UK tax due at all, but you do have to pay US tax. If you want to be pedantic on your HMRC self Assessment form you could write a note saying that you did the rollover and claim treaty exemption under Article 18.1.
FYI as an NRA you can play some nice games with personal allowances and exemptions in the US and the UK if your only income is from US IRAs.
If you take an income from your IRA (taxable only in the UK) equal to you UK personal allowance you will pay 0% UK tax. You can also rollover an amount from your IRA to a ROTH (only US taxable) equal to your US personal exemptions and allowances and pay 0% US tax. Then just take that amount from the ROTH. The result is you can take the total of the US and UK annual exemptions and allowances as tax free income, that's $24.6k tax free, here are some interesting scenarios.
IRA distribution = UK personal allowance
If your IRA to ROTH rollover equals your US exemptions and deductions you pay no tax at all. Today this would be $10000 rollover, $14632 IRA distributions = $24623/year tax free income
If you increased the rollover to $18925 you'd get to the top of the US 10% tax bracket and have $33557/year and an effective tax rate of 2.6%
If you increased the rollover to $46250 you'd get to the top of the US 15% tax bracket and have $60882/year and an effective tax rate of 8.2%
You must have the W-8BEN on file to avoid the mandatory withholding tax before you take an IRA distribution.
FYI as an NRA you can play some nice games with personal allowances and exemptions in the US and the UK if your only income is from US IRAs.
If you take an income from your IRA (taxable only in the UK) equal to you UK personal allowance you will pay 0% UK tax. You can also rollover an amount from your IRA to a ROTH (only US taxable) equal to your US personal exemptions and allowances and pay 0% US tax. Then just take that amount from the ROTH. The result is you can take the total of the US and UK annual exemptions and allowances as tax free income, that's $24.6k tax free, here are some interesting scenarios.
IRA distribution = UK personal allowance
If your IRA to ROTH rollover equals your US exemptions and deductions you pay no tax at all. Today this would be $10000 rollover, $14632 IRA distributions = $24623/year tax free income
If you increased the rollover to $18925 you'd get to the top of the US 10% tax bracket and have $33557/year and an effective tax rate of 2.6%
If you increased the rollover to $46250 you'd get to the top of the US 15% tax bracket and have $60882/year and an effective tax rate of 8.2%
You must have the W-8BEN on file to avoid the mandatory withholding tax before you take an IRA distribution.