mrken30

As they say in the US , would you like your Vindaloo mild,medium or hot. So strange

Disenchanted

I apologize for the timeliness of this reply, hadn't checked the posts for a while.

I've seen this document before, unfortunately we do not see the original question posed to the IRS. If "lump sum" is in there then I can see immediately that the stance will be to invoke the "savings clause" so that US government won't miss out on extra funds that they can now waste on our behalf.

How does one send these questions in to the IRS? Maybe the question should be crafted along different lines and "lump sum" should not be used. I wonder if it may result in a different reply?

mrken30

Maybe using the term variable distribution amounts ranging up to 25%

Disenchanted

Might I suggest that as mentioned in my above post, someone should maybe start by trying to illicit a different response from DOT with regard to a 25% partial disbursement of a "matured pension fund" and don't mention "LUMP SUM" anywhere in the question.

If they are successful in getting a different reply that does not mention the savings clause, and that the tax treaty will indeed allow for the same taxation rule as the origin country then that letter should/would go a long way to bolstering any argument with the IRS.

So how about it Samxboy ?????

Samxboy

On that very point I was wondering how to contact the IRS and pop the question. I believe various folks have spoken to the IRS and received varying responses, none of which would hold the IRS accountable.
When discussing my overall situation with my counsel I'll bring it up. Right now I'm more concerned in an overall exit strategy before Long Term Residency kick in...
By way of my ongoing experience with life in the US, I do hope any newbies looking for a long term stress free relationship with the IRS are very careful to cut all ties with the old country before applying for green cards. They've got a lot more baggage with them than I ever imagined!!!

mrken30

I have just remembered you need to make sure you have an insured contract based pension in the UK to get any tax relief from the IRS

Disenchanted

I believe it would be addressed to the "Department of the Treasury" in Washington rather than the IRS as they are the controlling body.
I would also presume it would need to take the form of a written request rather than email or verbal.


Agreed. I try to mention such things as FBAR, FACTA and IRS requirements to those that are contemplating moving here.
If I knew in 1985 what I know now I would have spent a lot more time pondering the ramifications of the move.
So many things here have changed, and certainly not for the better.

Back then I worked for Cunard Line on their cruise ships where I met my current wife while she was on a Caribbean cruise.
When we decided to get married I just sold my UK house, left the money in NatWest and came over.
I already had a job lined up, we were married 3 months later, been here ever since.

I would say that my user name and signature pretty much sums up my current opinion of this country.

mrken30

It's difficult to determine if life would have been better staying in the UK. I think things have changed globally, not necessarily for the better.
In 1985 Gordon Brown hadn't started taxing pension funds. The sell off of social housing had just started. HMRC was then the Inland Revenue. Houses were still affordable for most and people had access to "free" education.

Samxboy

I've only been here 4 years, starting in New York and now Chicago. My kids ( adults) stayed in the UK and our plan did intend to have us return....some day!
I was a bit idealistic about the US when I came here but living here and dealing with a multitude of employee & business issues has opened my eyes to how 'tough' it really is. Of course there's some great people but my opinion is that America is as much morally bankrupt as it is financially wasted. Once the credit finally runs out it will get very difficult!!

I guess the grass is always greener but speaking to the locals and how they feel about America....they think we're nuts for wanting to come here. I guess they're disenchanted as well!

mrken30

I think some people say that where ever they live, especially in the UK. A lot depends on what you require from life. Living in Cornwall was great until I needed a job. I live on the West coast, Oregon , which is great until you need to get somewhere with 55 mph limits.
The biggest culture change for me was being aware that the Police are too ready and willing to shoot people, and in some cases quite corrupt. Small town policing doesn't really exit in the UK.
This should probably be in another topic elsewhere.

Samxboy

You're right they do say that. I did myself before I left, but upon reflection I think the UK is a fairer and more tolerant society. Certainly not perfect and ever changing and certainly struggling with globalization and european federalism. All islands are worlds unto themselves.

mrken30

There is one good thing about the US, my hobby of flying is much cheaper than the UK and has less controlled airspace than the UK. Where I live is very much like England and there are beautiful views at 3000 ft.