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

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

Old May 26th 2015, 4:09 pm
  #1  
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Default 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.
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Old Jun 1st 2015, 8:11 pm
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Default 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.
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Old Jun 2nd 2015, 1:29 am
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Default Re: NEST pension auto enrollment US tax issues? trust? pension?

Originally Posted by jb82
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.
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.
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