NEST pension auto enrollment US tax issues? trust? pension?
 

I'm US resident.
One of my side jobs is in the UK and I may be auto-enrolled into the NEST pension scheme with this (i can opt out). NEST stands for National Employment Savings Trust which is a government scheme used for workplace pension auto enrollment that several employers use.

1. Am I going to get into all kinds of issues with US tax with this one since it is a "trust". If I earn a certain amount the employer will match a certain percentage so it could be beneficial if I am not stuck with a whole bunch of US tax issues.

2. If not (and so it istreated like a regular pension scheme) can I contribute to this and gain tax relief off my US taxes like a 401k. I read somewhere that the double tax treaty allows this but I can't find where I read that to check! I might have been dreaming it :)

Anyone else have this pension scheme?

Thanks.

Re: NEST pension auto enrollment US tax issues? trust? pension?
 

Hello,
We have set this up in our UK based company. You need to check but I am fairly sure you are not able to enrol in NEST or an alternative pension scheme if you are not UK resident.

Re: NEST pension auto enrollment US tax issues? trust? pension?
 

On what basis does the UK company employ you? You say you are US resident, where do you perform the work? I find it hard to believe that your would qualify for a UK based pension unless you are on an intra-company transfer and have specifically set things up to continue to pay UK National Insurance and retirement contributions while working in the US or you are a dual US/UK resident.

You will find how US and UK pensions are treated for tax purposes by reading the IRS and HMRC rules taking into account the US/UK tax treaty Articles 17, 18, 19 and 23.....don't forget the saving clause if you are a US citizen or resident.