Transferring UK pension to US 401K!
#61
Re: Transferring UK pension to US 401K!
A personal pension account is a tax-advantaged product, which is capped and restricted, so your lack of a Canadian social security number may cause a problem. I doubt you can just request one if you aren't living in Canada, and I have no idea whether Canada issues ITINs as the US does, nor any idea whether such a "Canadian ITIN" (if it exists) would allow you to transfer a personal pension to a Canadian account.
#62
Re: Transferring UK pension to US 401K!
I have moved to the US and tried to transfer my Police pension over here. When I opened the account with Fidelity I was told I can transfer it over. The sales person got it wrong and I have now been told I can not transfer it.
From posting in the Police forum someone transferred their pension from the UK to Canada because that is where they moved. Now this is going to sound really silly but although I have moved to the US can I transfer it to Canada? I can not cash it out in the UK so need to transfer it somewhere. Any thoughts?
Cheers
From posting in the Police forum someone transferred their pension from the UK to Canada because that is where they moved. Now this is going to sound really silly but although I have moved to the US can I transfer it to Canada? I can not cash it out in the UK so need to transfer it somewhere. Any thoughts?
Cheers
#63
Forum Regular
Joined: Nov 2011
Posts: 51
Re: Transferring UK pension to US 401K!
I want the money now so I can do something better with it like invest it into property etc as over here (in the US) it is a good time to buy.
With the new regulations coming into play with Police pensions I am now I have to wait till I am 65 till I can get it....2 things with this:
1 - I might be dead by the time I am 65
2 - It would not surprise me if in a few years the government turn around and say 'oh very sorry, we have no more money to pay your pension but thanks for putting in for 6 years'.
....and its the second I am more worried about over the first!!!
With the new regulations coming into play with Police pensions I am now I have to wait till I am 65 till I can get it....2 things with this:
1 - I might be dead by the time I am 65
2 - It would not surprise me if in a few years the government turn around and say 'oh very sorry, we have no more money to pay your pension but thanks for putting in for 6 years'.
....and its the second I am more worried about over the first!!!
#65
Re: Transferring UK pension to US 401K!
I want the money now so I can do something better with it like invest it into property etc as over here (in the US) it is a good time to buy.
With the new regulations coming into play with Police pensions I am now I have to wait till I am 65 till I can get it....2 things with this:
1 - I might be dead by the time I am 65
2 - It would not surprise me if in a few years the government turn around and say 'oh very sorry, we have no more money to pay your pension but thanks for putting in for 6 years'.
....and its the second I am more worried about over the first!!!
With the new regulations coming into play with Police pensions I am now I have to wait till I am 65 till I can get it....2 things with this:
1 - I might be dead by the time I am 65
2 - It would not surprise me if in a few years the government turn around and say 'oh very sorry, we have no more money to pay your pension but thanks for putting in for 6 years'.
....and its the second I am more worried about over the first!!!
#66
Forum Regular
Joined: Nov 2011
Posts: 51
Re: Transferring UK pension to US 401K!
and what happens if I die at the age of 55? or what happens if the UK gov turn around the day before I turn 65 and say they have no more money to pay pensions?
#67
Re: Transferring UK pension to US 401K!
Pension money should be kept for use in retirement. If you tap it early you will definitely get a lower payment and will be exchanging the risk of Government cutbacks for the risk of the stock market or real estate, or for the risk that you run out of money well before you die. Doing a QROP will probably cost you 25k GBP and there will be the ongoing fees of the investment funds as well as the uncertaity of dealing with US and local taxation of the QROP.
Last edited by nun; Jun 11th 2013 at 7:30 pm.
#68
Lost in BE Cyberspace
Joined: Jan 2006
Location: San Francisco
Posts: 12,865
Re: Transferring UK pension to US 401K!
#69
Re: Transferring UK pension to US 401K!
If the UK has reached the point where it defaults on pension obligations, the economy of the western world would likely be so shaky that your planned investments in real estate would be in ruins too. Diversification is the name of the game, and your best friend in uncertain times, and I would love to have a defined benefit pension in my portfolio of investments!
#72
Just Joined
Joined: Jul 2013
Posts: 2
Re: Transferring UK pension to US 401K!
The really frustrating thing is that my UK pension is frozen till I'm 55 with no right to make any further contributions, so the ability for that fund to grow and work for me is almost non-existent; I'm not looking to cash out early! I would have thought that the IRS would have welcomed people bringing additional money in to the US system.
#73
Re: Transferring UK pension to US 401K!
The really frustrating thing is that my UK pension is frozen till I'm 55 with no right to make any further contributions, so the ability for that fund to grow and work for me is almost non-existent; I'm not looking to cash out early! I would have thought that the IRS would have welcomed people bringing additional money in to the US system.
Anyhow, your pension funds in the UK should be working just fine for you. The snowball effect works the same whether you have $1,000 or $1,000,000, if the market rises by 10% you'll get 10% on your investments (assuming they are perfectly correlated with the market).
Last edited by Pulaski; Jul 25th 2013 at 10:00 pm.
#74
Just Joined
Joined: Jul 2013
Posts: 2
Re: Transferring UK pension to US 401K!
If it's frozen in the UK that's not the IRS's fault. And the ability to cash out a 401k is contrary to everything the British pension system stands for, and I don't see how anyone will ever be permitted to move a British pension into any sort of investment that permits premature withdrawals. IMO, the US would do well to follow suit, protecting it's citizens from themselves and reducing the number of people reliant on supplemental income from tax revenues.
Anyhow, your pension funds in the UK should be working just fine for you. The snowball effect works the same whether you have $1,000 or $1,000,000, if the market rises by 10% you'll get 10% on your investments (assuming they are perfectly correlated with the market).
Anyhow, your pension funds in the UK should be working just fine for you. The snowball effect works the same whether you have $1,000 or $1,000,000, if the market rises by 10% you'll get 10% on your investments (assuming they are perfectly correlated with the market).
#75
Re: Transferring UK pension to US 401K!
It's not the IRS' fault that my UK fund is frozen, that wasn't implied. Also because the HMRC doesn't allow continuing contributions from ex-pats the snowball effect off the market can't be fully capitalized upon. It just seems to me that it's part of the tax treaty that wasn't given proper consideration.
The big problem with UK pension plans are the ridiculous expenses and poor returns to the investor.