Newbie_stateside

I'm here permanently now on green card basis. So I am now a US tax payer. My question is updating my details with my SIPP administrator TD Waterhouse. I've visions of them kicking me out because I live here. No one seems to want to deal with Americans anymore. I checked for my husband he's with Hargreaves Landsdowne and they have no issues with people holding either a SIPP or an ISA if you live abroad but I"m worried about TD. I'd like to know if anyone has had either an ISA or a SIPP with them in the UK and if they allow you to keep it while you live in the US? I've checked their web site and can find nothing about this which is worrying.

Any experience with this?

MMcD

Why ask us?
Call them

Newbie_stateside

Because forewarned is forearmed??? Is it not the intention of forums like these to share information?

MMcD

Yes.
In this instance enforcement of IRS FATCA rules, which take effect in May of 2014, may well determine the answer to your specific question.

Even if someone here had past experience with regard to your very specific question - I wouldn't rely on that example going forward.
Read this which may help.....

http://www.mondaq.com/unitedstates/x...shG291DAzadpuf

Newbie_stateside

So.....looks like its as bad as I thought. Based on initial conversation they don't want to do business with me now. Problem is no one else does as they won't set up an account with a US person. My husband is ok because HL takes the pragmatic view that he established his SIPP while a UK tax payer. I did as well but am now in really big trouble because I made a choice on administrators 5 years ago. I can't liquidate my pension or I'll take a huge tax hit. I can't transfer it either. Bloody incredible. I'm witnessing my retirement being blown up because of IRS scare mongering. I'm up to date on my reporting. I'm certainly not having one over. But I can't liquidate my SIPP. I'm only 39 years old. I quality for no tax relief if I do. Seething..I don't understand how this is legal? How can TD do this to their customers? If they have to fill out an extra form for the IRS that's their problem. Suck it up folks. Its part of doing business. For me personally this looks like a financial disaster. I had hoped to hear what TD might be offering to others on here. I am due to receive a letter in a few weeks to provide further instructions though based on my conversation its sounds like it will be a dear john letter in any case.

MMcD

That's exactly, precisely what I feared.
The onerous new IRS reporting requirements for any and all overseas financial institutions will cause many of them to opt to not take on anything new - not already on their books.
And that's why I urged you to contact them directly.

That's a total bummer for you...but perhaps you might want to explore the feasibility of moving whatever it is you now hold - to a UK company which is continuing to take on new accounts requiring FICA reporting. I'll confess I know nothing about SIPPS - and whether you're inextricably tied to the administrator holding it. (This idea may be a non-starter)

dunroving

I am having a parallel problem with my TIAA-CREF 401k/403b (currently live in the UK). Currently have a thread going on the MBTTUK forum about it.

They have 10 years' worth of my pension contributions but won't let me open an IRA in order to take advantage of the better tax implications. It also all seems to come down to addresses, residence and a general unwillingness to take on anything that sniffs of complication. Annoying.

TexasPenguin

I opened a SIPP with Sippdeal (now called Youinvest) about 2 years ago to transfer in my frozen private pension.
It's still going strong and they've certainly made no noises of abandoning me in May.
I'm a dual citizen and living in Texas permanently and had no problems with them.
YMMV, of course.

MMcD

Before throwing in the towel ...now that you know the company's position, and the IRS/FICA situation - I'd suggest that this might be a more appropriate time to see what you might find out at online forums. (You'll now be better informed & can weigh what you learn in in a context of what you now know).

I'd start here: http://talk.uk-yankee.com/index.php?board=11.0
Even tho it's geared toward those who've gone in opposite direction (us ->uk) it's worth a shot.
And then there's always this, of course: http://forums.moneysavingexpert.com/...splay.php?f=19

Don't give up - yet
And good luck

Newbie_stateside

I think my first step is to speak to a SIPP specific person at TD on Tuesday. None was available today and not till after the Easter break. I'll get more clarity then. Hopefully I was speaking to a poorly trained customer service rep. I know I can not make any new contributions. I expect that but I can't have them liquidate my stocks and freeze the account in cash and 'unwrap' it from being a SIPP thereby causing me to incur a big, big tax bill. That could not be legal I think. Holding fire till then. I'll report back on Tuesday as there must be many people in my situation. TD is a big SIPP administrator and must have more clients like me whose tax residency has changed after becoming a client. Thanks for all the advice and fingers crossed.

MMcD

" United States Dealing
As part of our obligations to the US Tax Authorities – Internal Revenue Service (IRS) we are required to document all holders of US securities. Additionally, should you reside in a country that has a treaty with the US you may benefit from treaty relief in respect of dividend and interest payments.
If you wish to invest in US (United States) stocks and shares, you will need to complete the appropriate Form W-8, depending on your account type."

The above from TD Waterhouse UK website: http://www.tddirectinvesting.co.uk/c...res-and-funds/

Intuition tells me that once you get through to the right dept. on Tues. (which may, in itself be a feat of perseverance), you'll find you're going to be fine

Newbie_stateside

Just spoke to TD again. They are in fact freezing my account. I cannot buy any new stocks with funds placed in my SIPP while a UK tax payer. I can sell stocks I currently own and that's it and that was only after half an hour of pretty furious debate. I have 50% cash and that's frozen. Cannot trade at all with it. Given that I am only 39 they have in one fell swoop properly screwed my pension.

I strongly advise anyone intending to move out of the UK to end any financial relationship with this company. All other SIPP providers (to my knowledge) are happy to keep you and work with you provided you make no new contributions. What they are doing borders on illegal. It will effectively destroy the value of my pension. I intend on making a complaint to the FSA and may take legal action. Just a word of warning about this company so others can avoid this.

No policy statement on their web site and in fact I had a conversation with then before moving out here in which I was told that there would be no impact bar not being able to make new contributions. They are only too happy to take your money then once you move they effectively seize it. I cannot transfer out as no one will now take me as a new account with a US address. I am now looking into QROPS but understand little about it at this stage. This has nothing to do with FACTA BTW. Those new rules make a clear distinction between SIPPs and brokerage accounts. There are no detailed financial reporting requirements placed on TD by keeping me as a customer even with a US address. This is purely a corporate action not a regulatory one.

MMcD

1.*Just a correction to my own post above; it should say "FATCA" (like my 1st post did)
2. Forget QROPS - When resident here it's not allowed

dunroving

Not the exact same situation but when Scottrade found out I was no longer living in the US, they not only told me I couldn't buy new stocks/shares/mutual funds/ETFs (which I expected anyway), but they said I MUST sell all of my holdings with them, effectively ASAP and close my account.

I can understand these financial firms having to enforce legislation, but I think at lot of the time there is no legal basis for them riding roughshod over current customers just because of their address.