NEST pension auto enrollment US tax issues? trust? pension?
#1
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Joined: Mar 2015
Posts: 75
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.
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.
#2
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.
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.
#3
Re: 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.
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.
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.