Cashing in a British Pension Scheme
Mar 7th 2005, 4:03 pm
#1
Septicity
Thread Starter
Joined: May 2004
Posts: 23,762
Re: Cashing in a British Pension Scheme
Originally Posted by UKintheUSA
Is this allowed with a penalty as you can cash in an IRA by paying a penalty?
My husband has a Pension in the UK, is now here in the USA, will be retiring in the USA. Mainly the question is he got saddled/screwed in his divorce and needs "some" of this money if he can get it to get out of debt. This debt hanging over our heads is starting to get to me.
Any advice would be appreciated.
My husband has a Pension in the UK, is now here in the USA, will be retiring in the USA. Mainly the question is he got saddled/screwed in his divorce and needs "some" of this money if he can get it to get out of debt. This debt hanging over our heads is starting to get to me.
Any advice would be appreciated.
Generally, no way Jose!
We'll need a little more info though:
What sort of pension is it and how is it held?
How big is the pension (approximately)?
How old is he?
Mar 7th 2005, 5:33 pm
#2
Septicity
Thread Starter
Joined: May 2004
Posts: 23,762
Re: Cashing in a British Pension Scheme
Originally Posted by UKintheUSA
He is 38 years old and it is held with the British Steel Company he worked for.
He doesn't want to cash ALL of it in just a portion of it. Is it transferable to the USA to be put into an IRA here?
He doesn't want to cash ALL of it in just a portion of it. Is it transferable to the USA to be put into an IRA here?
Bad news, I'm afraid.
It certainly isn't transferable to a US IRA or any other US pension scheme under current regulations.
I believe his first chance will come around 50 where he might be able to take a lump sum. He should investigate howw it is performing at the moment and possibly consider transferring it to a SIPP-type scheme if possible so it is more under his control.
