Pension confusion
Nov 7th 2015, 4:34 pm
#1
Just Joined
Thread Starter
Joined: Nov 2015
Posts: 1
Pension confusion
Hi,
My dad has lived and worked in the USA since 1998 and became a US Citizen a few years ago.
He is due to retire in a couple of years and is trying to figure out what he will be entitled to and what tax he will have to pay. Ive looked online and it seems very confusing. In short my dad has the following arrangements
1) 30 years state pension qualifying years in the UK. Will be eligible for the this in Dec 2016. So looks like he will be entitled to a reduced pension based on recent changes?
2) Small personal Pension in the UK with a fund of around £24k. I think he will want to take the full amount (25% tax free 75% taxed but who gets the tax?)
3) 401k Pension in USA, will apparently benefits at age 66 (2017)
4) USA state pension?
Could anyone advise what tax would be payable on the UK pensions and would my dad receive full benefits from both the UK and USA or is there some dual taxation.
He still has a UK bank account that he uses for holidays so UK pension payments can be made into this account
My dad isn't financially minded so I'm trying to summarise everything for him any help welcomed or if anyone could point me in the right direction. HMRC have not been very helpful today.
Thanks
My dad has lived and worked in the USA since 1998 and became a US Citizen a few years ago.
He is due to retire in a couple of years and is trying to figure out what he will be entitled to and what tax he will have to pay. Ive looked online and it seems very confusing. In short my dad has the following arrangements
1) 30 years state pension qualifying years in the UK. Will be eligible for the this in Dec 2016. So looks like he will be entitled to a reduced pension based on recent changes?
2) Small personal Pension in the UK with a fund of around £24k. I think he will want to take the full amount (25% tax free 75% taxed but who gets the tax?)
3) 401k Pension in USA, will apparently benefits at age 66 (2017)
4) USA state pension?
Could anyone advise what tax would be payable on the UK pensions and would my dad receive full benefits from both the UK and USA or is there some dual taxation.
He still has a UK bank account that he uses for holidays so UK pension payments can be made into this account
My dad isn't financially minded so I'm trying to summarise everything for him any help welcomed or if anyone could point me in the right direction. HMRC have not been very helpful today.
Thanks
Nov 9th 2015, 12:08 am
#2
BE Enthusiast
Joined: Feb 2014
Posts: 592
Re: Pension confusion
1) He will receive the pension on the new scales as listed on the HMRC site.
2) If he takes it a lump sum then any tax payable is to the UK Government as that is the jurisdiction it is in.
3 & 4 - It is best to refer this to the USA Forum area.
I hope that helps a bit.
2) If he takes it a lump sum then any tax payable is to the UK Government as that is the jurisdiction it is in.
3 & 4 - It is best to refer this to the USA Forum area.
I hope that helps a bit.
