Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

Simple IRA- What to do?

Simple IRA- What to do?

Old May 24th 2012, 7:53 pm
  #1  
Forum Regular
Thread Starter
 
Joined: Apr 2010
Posts: 53
CTland is a name known to allCTland is a name known to allCTland is a name known to allCTland is a name known to allCTland is a name known to allCTland is a name known to allCTland is a name known to allCTland is a name known to allCTland is a name known to allCTland is a name known to allCTland is a name known to all
Default Simple IRA- What to do?

I am two weeks away from relocating back to UK and would welcome any views on what I should do with my (small) simple IRA.
I have joint US/UK citizenship so know that I have a lifetime of US tax filing to look forward to!
Is it best to leave it here and (hopefully) let it grow? can I transfer the funds into a UK pension plan?
I think it can be cashed in with a 20% ish penalty but would prefer not to do that.
Advice welcome, Thanks
CTland is offline  
Old May 24th 2012, 11:19 pm
  #2  
nun
BE Forum Addict
 
nun's Avatar
 
Joined: Aug 2004
Posts: 4,722
nun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond repute
Default Re: Simple IRA- What to do?

Originally Posted by CTland View Post
I am two weeks away from relocating back to UK and would welcome any views on what I should do with my (small) simple IRA.
I have joint US/UK citizenship so know that I have a lifetime of US tax filing to look forward to!
Is it best to leave it here and (hopefully) let it grow? can I transfer the funds into a UK pension plan?
I think it can be cashed in with a 20% ish penalty but would prefer not to do that.
Advice welcome, Thanks
You cannot do a tax free transfer (roll over) to anything other than a qualified US plan and Simple IRAs have special rules so that you have to wait two years to do a rollover to a regular IRA. So bottom line is you cannot move your Simple IRA to the UK without cashing it in and taking the 10% penalty and tax hit.

The best thing to do is to leave it alone and maybe look into how to transfer it to a regular IRA. The UK/US tax treaty will protect any gains from UK taxation and when you take income you will have to pay both US and UK taxation and use foreign tax credits to eliminate double taxation.
nun is offline  
Old May 25th 2012, 5:38 pm
  #3  
Forum Regular
Thread Starter
 
Joined: Apr 2010
Posts: 53
CTland is a name known to allCTland is a name known to allCTland is a name known to allCTland is a name known to allCTland is a name known to allCTland is a name known to allCTland is a name known to allCTland is a name known to allCTland is a name known to allCTland is a name known to allCTland is a name known to all
Default Re: Simple IRA- What to do?

Thanks Nun,
I have been in the scheme 6 years so presume it might be easier to move?
I am leaving the small company I work for and things are a little frosty right now- the owner got his pal to set up and run the scheme and I just wanted to put a little distance between us all...not to mention that the mutals he recommended are all still below what I had paid for them!!.. that taught me a lesson also
CTland is offline  
Old May 28th 2012, 4:55 pm
  #4  
nun
BE Forum Addict
 
nun's Avatar
 
Joined: Aug 2004
Posts: 4,722
nun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond repute
Default Re: Simple IRA- What to do?

Originally Posted by CTland View Post
Thanks Nun,
I have been in the scheme 6 years so presume it might be easier to move?
I am leaving the small company I work for and things are a little frosty right now- the owner got his pal to set up and run the scheme and I just wanted to put a little distance between us all...not to mention that the mutals he recommended are all still below what I had paid for them!!.. that taught me a lesson also
You should look at how to roll the Simple IRA into a regular IRA with a low cost provider like Vanguard, Fidelity or Schwab. Then you might consider an IRA to ROTH conversion give your tax bracket and future plans. The ROTH has tax free gains and withdrawals in both the US and the UK.
nun is offline  
Old May 28th 2012, 9:38 pm
  #5  
BE Forum Addict
 
Joined: Jun 2010
Posts: 2,847
HarryTheSpider has a reputation beyond reputeHarryTheSpider has a reputation beyond reputeHarryTheSpider has a reputation beyond reputeHarryTheSpider has a reputation beyond reputeHarryTheSpider has a reputation beyond reputeHarryTheSpider has a reputation beyond reputeHarryTheSpider has a reputation beyond reputeHarryTheSpider has a reputation beyond reputeHarryTheSpider has a reputation beyond reputeHarryTheSpider has a reputation beyond reputeHarryTheSpider has a reputation beyond repute
Default Re: Simple IRA- What to do?

Useful info - thanks

I must also get used to the fact that IRA is not a reference any more to a terrorist organisation!
HarryTheSpider is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.