British Expats

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-   -   Taxation question (https://britishexpats.com/forum/usa-57/taxation-question-893656/)

Pulaski Mar 9th 2017 5:48 pm

Re: Taxation question
 

Originally Posted by tom169 (Post 12201218)
WEP? Is it something I should be concerned about? Sorry, i'm a dummy with this.

The US SS administration claws back some of your SS when you retire if you have relatively few years of SS contributions and have non-SS pensions (meaning foreign or US government - there is a huge thread in the US forum on the subject if you want to read more, a LOT more, about it). It is done on a sliding scale, but so long as you can reach 30 years of SS contributions the clawback becomes zero.

Originally Posted by nun (Post 12201214)
I know you know this, but we should point out that a UK state pension paid for with voluntary NI is not WEP'able.

Thank you, I had forgotten to mention that. :o

tom169 Mar 9th 2017 5:52 pm

Re: Taxation question
 

Originally Posted by Pulaski (Post 12201237)
The US SS administration claws back some of your SS when you retire if you have relatively few years of SS contributions and have non-SS pensions (meaning foreign or US government - there is a huge thread in the US forum on the subject if you want to read more, a LOT more, about it). It is done on a sliding scale, but so long as you can reach 30 years of SS contributions the clawback becomes zero.

Fair enough. As I'll be looking at 30 years here I'll go full steam ahead into contributing to the UK.

My current retirement funding priority is now 401k, HSA, UK Pension, Roth IRA.

nun Mar 9th 2017 8:10 pm

Re: Taxation question
 

Originally Posted by tom169 (Post 12201240)
Fair enough. As I'll be looking at 30 years here I'll go full steam ahead into contributing to the UK.

My current retirement funding priority is now 401k, HSA, UK Pension, Roth IRA.

As was mentioned above you won't have any US SS you get reduced by WEP if your UK state pension is from voluntary NI.

If you are a US resident you probably won't be able to contribute to a UK pension...unless you have some special workplace L-1 visa arrangement. But 401k, HSA and ROTH IRA are all excellent accounts to be using.

FYI I would highly recommend Vanguard for ROTH account.


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