British Armed Forces Pension Moved From The UK To The USA
Apr 1st 2017, 1:50 am
#1
Permanent Legal Resident
Thread Starter
Joined: May 2015
Location: California
Posts: 57
British Armed Forces Pension Moved From The UK To The USA
Hi Guys,
Quick question. I have a pension paid in to my UK bank account every month tax free. My question is, i am considering on having my pension payed in to my US bank account or a savings account or some sort of retirement plan i am trying to set up out here. I am curious on if i do this would it be taxed in the US at all.
I am a permanent resident in the state of California.
I am still trying to look up more information online.
Any information would be highly appreciated.
Quick question. I have a pension paid in to my UK bank account every month tax free. My question is, i am considering on having my pension payed in to my US bank account or a savings account or some sort of retirement plan i am trying to set up out here. I am curious on if i do this would it be taxed in the US at all.
I am a permanent resident in the state of California.
I am still trying to look up more information online.
Any information would be highly appreciated.
Apr 1st 2017, 2:21 am
#2
BE Forum Addict
Joined: Aug 2004
Posts: 4,754
Re: British Armed Forces Pension Moved From The UK To The USA
It is not possible to transfer a UK pension to one in the US or pay UK pension income into a US retirement account as you need US earned income to contribute to a US retirement account like a 401k, ROTH or traditional IRA.
As you are a US resident, but not a US citizen your UK government pension will be free of US Federal tax as stated in IRS 901 p33
https://www.irs.gov/pub/irs-pdf/p901.pdf
"Pensions paid by, or funds created by, the United Kingdom, its political subdivisions, or local authorities for services performed for the United Kingdom are exempt from U.S. income tax unless the recipient is both a resident and citizen of the United States."
Your UK Government pension will be taxable by the UK and also I believe it will be taxable in CA as CA does not recognize US international tax treaties.
As you are a US resident, but not a US citizen your UK government pension will be free of US Federal tax as stated in IRS 901 p33
https://www.irs.gov/pub/irs-pdf/p901.pdf
"Pensions paid by, or funds created by, the United Kingdom, its political subdivisions, or local authorities for services performed for the United Kingdom are exempt from U.S. income tax unless the recipient is both a resident and citizen of the United States."
Your UK Government pension will be taxable by the UK and also I believe it will be taxable in CA as CA does not recognize US international tax treaties.
