Pension tax concerns - Replace greencard for B2
#76
Re: Pension tax concerns - Replace greencard for B2
As they say in the US , would you like your Vindaloo mild,medium or hot. So strange
#77
Re: Pension tax concerns - Replace greencard for B2
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?
Oh, I just found this, from the IRS: http://www.irs.gov/pub/irs-wd/08-0024.pdf
Which seems pretty definitive, unfortunately.
Which seems pretty definitive, unfortunately.
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?
#79
Re: Pension tax concerns - Replace greencard for B2
This is all good news...but how do we turn this growing tide of consensus into a practical reality? I'd love to try it out, but alas I've got way too much to loose with my particular circumstances. In any event I wouldn't be taking my pension till next year or even the year after. In preparation for that I'd have to return my GC in the year before that to ensure tax exemption status.
Is there a particular US tax attorney you would recommend that I could discuss this issue and see what they recommend?
Is there a particular US tax attorney you would recommend that I could discuss this issue and see what they recommend?
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 ?????
#80
Forum Regular
Thread Starter
Joined: Aug 2013
Location: Florida
Posts: 64
Re: Pension tax concerns - Replace greencard for B2
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 ?????
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 ?????
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!!!
#81
Re: Pension tax concerns - Replace greencard for B2
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
#82
Re: Pension tax concerns - Replace greencard for B2
I would also presume it would need to take the form of a written request rather than email or verbal.
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!!!
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.
#83
Re: Pension tax concerns - Replace greencard for B2
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.
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.
#84
Forum Regular
Thread Starter
Joined: Aug 2013
Location: Florida
Posts: 64
Re: Pension tax concerns - Replace greencard for B2
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!
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!
Last edited by Samxboy; Aug 18th 2015 at 7:43 pm.
#85
Re: Pension tax concerns - Replace greencard for B2
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.
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.
#86
Forum Regular
Thread Starter
Joined: Aug 2013
Location: Florida
Posts: 64
Re: Pension tax concerns - Replace greencard for B2
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.
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.
#87
Re: Pension tax concerns - Replace greencard for B2
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.