FSAVC's
#1
in Northern California
Thread Starter
Joined: Apr 2014
Posts: 284
FSAVC's
While a UK citizen and resident during 1991-2 I invested in some Free Standing AVC's still invested with the Prudential in the UK.
I am now a USA citizen/resident aged 62 and retired. I have not "switched on" most of my other pension plans yet and would like to start taking some or all of the money out of this particular pot. Total value is about $100k.
The industry implementation of the flexible drawdown options introduced in April 2015 seem complete unworkable.
I'm thinking about trying to cash out the entire amount. Since I can establish a cost basis, I thought I might get away with reporting this to the IRS as a long term capital gain (which will be advantageous compared to treating the proceeds as income).
Do you think this idea will fly? Other suggestions for handling a FSAVC pot of this size?
I am now a USA citizen/resident aged 62 and retired. I have not "switched on" most of my other pension plans yet and would like to start taking some or all of the money out of this particular pot. Total value is about $100k.
The industry implementation of the flexible drawdown options introduced in April 2015 seem complete unworkable.
I'm thinking about trying to cash out the entire amount. Since I can establish a cost basis, I thought I might get away with reporting this to the IRS as a long term capital gain (which will be advantageous compared to treating the proceeds as income).
Do you think this idea will fly? Other suggestions for handling a FSAVC pot of this size?
#2
Re: FSAVC's
No! This is a pension and therefore taxable as income or as a lump sum by the US......but not taxable in the UK if you are a US resident.
#3
in Northern California
Thread Starter
Joined: Apr 2014
Posts: 284
Re: FSAVC's
Thank you. Since my original post I have reached exactly the same conclusion. It seems that folks born before January 2, 1936 have a bit more flexibility, but fortunately I don't have that many miles on the clock!
I will call the Pru tomorrow and see what withdrawal options they can offer me other than an annuity. Last time I spoke to them they didn't have their act together on the new April 2015 regulations. I won't be shocked if I find we're in the same ongoing nothing-going-on situation but we shall see...
Thank you again. I have been reading a lot of your other posts concerning the IRS treatment of 25% tax free lump sum distributions from UK pensions. I really appreciate your many and wonderful contributions to this forum and I'm sure I am not alone!
I will call the Pru tomorrow and see what withdrawal options they can offer me other than an annuity. Last time I spoke to them they didn't have their act together on the new April 2015 regulations. I won't be shocked if I find we're in the same ongoing nothing-going-on situation but we shall see...
Thank you again. I have been reading a lot of your other posts concerning the IRS treatment of 25% tax free lump sum distributions from UK pensions. I really appreciate your many and wonderful contributions to this forum and I'm sure I am not alone!
#4
Re: FSAVC's
Thank you. Since my original post I have reached exactly the same conclusion. It seems that folks born before January 2, 1936 have a bit more flexibility, but fortunately I don't have that many miles on the clock!
I will call the Pru tomorrow and see what withdrawal options they can offer me other than an annuity. Last time I spoke to them they didn't have their act together on the new April 2015 regulations. I won't be shocked if I find we're in the same ongoing nothing-going-on situation but we shall see...
Thank you again. I have been reading a lot of your other posts concerning the IRS treatment of 25% tax free lump sum distributions from UK pensions. I really appreciate your many and wonderful contributions to this forum and I'm sure I am not alone!
I will call the Pru tomorrow and see what withdrawal options they can offer me other than an annuity. Last time I spoke to them they didn't have their act together on the new April 2015 regulations. I won't be shocked if I find we're in the same ongoing nothing-going-on situation but we shall see...
Thank you again. I have been reading a lot of your other posts concerning the IRS treatment of 25% tax free lump sum distributions from UK pensions. I really appreciate your many and wonderful contributions to this forum and I'm sure I am not alone!