Moonsquirrel

Hello,

So you guys are pretty switched on and generally have been great for saving me time and money

So I happily just got married on a k1 visa and awaiting AOS.

I still have £80k worth of savings in my UK bank account. Question 1: as it's still in the UK, can I or can't I complete form p85?

I have been intending to leave this money in my UK bank, as the interest rate in the UK is higher than the usa. Question 2: is there anything smarter I should be doing with the money in the US, which is low risk and would still give me instance access?

I intend to bring the money over in 2 years or so, when we're looking to buy a house. Question 3: is there any tax I'd have to pay in the usa on bringing this money over?

Thank you again and again!

Pulaski

Cash in the bank has nothing to do with your p85.

You might not get the same interest rate on cash deposits in the US, but you are exposed to exchange rate fluctuations. In theory the difference in interest rate offsets the forward exchange rate, but there are substantial random and/or unpredictable movements in the exchange rates that are very generally a reflection of

(i) interest rates offered - when the Bank of England raises interest rates, the pound is expected to strengthen (you can buy more US$ with your pounds sterling), and

(ii) the health of the economy - if businesses want to invest in British factories or other business assets they need to buy pounds and the demand raises the value of pound sterling. If the economy is in the crapper business want to get their money out to invest in other countries.

The same effect applies for the US$ and investing in the US, with the added complication that the US$ is a reserve currency, so when the entire world goes to hëll in a handbasket, major investors and central banks like to buy US$ because it is perceived as being "safe", and even if the US was arguably the cause of the 2008-2009 global meltdown, people still bought US$ and pushed the value of the dollar up!

So, as you have the luxury of time, you should watch the exchange rates, but beware the rate might go down rather than up. If I knew which way exchange rates will move I would be a currency trader, but I have no idea, and quite frankly, neither do the big banks that trade foreign currencies. For every buyer there has to be a seller, and for every profit there is (excluding long-term value shifts) a loss, and it is therefore very hard to make gains consistently because nobody knkws what the GBP/USD exchange rate will be three months from now, or even tomorrow, so you can imagine how successful forecasting the exchange rate 12 months from now is going to be.

The optimum strategy for you might be to wait until you see a favourable movement in the exchange rate, then move some of your money, then wait a few months and if the rate has improved move some more, and so on. You won't get the very maximum amount of USD for your GBP, but you are absolutely certain not to get the worst rate either. Although you'll get a better rate for moving larger sums, the fluctuations are likely to be much greater than the difference in rates for moving, say, £40k v moving £20k.

And, there is absolutely no tax implication for moving money that you already own, none whatsoever.

Orangepants

Read up about FBAR - the form you file to FINCEN to report your overseas accounts and perhaps form 8938 might apply once you become a tax payer. Not sure if you need to file for this year but definitely next year if you keep your savings overseas.