UK Pension
Oct 29th 2013, 11:03 pm
#1
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UK Pension
What happens to my husband's UK pension once we move to the USA?
Oct 29th 2013, 11:12 pm
#2
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Joined: May 2010
Location: San Diego, California
Posts: 9,651
Re: UK Pension
Are you talking about a private pension of the Government State pension?
Oct 29th 2013, 11:26 pm
#3
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Re: UK Pension
Private Pensions.
)
Oct 30th 2013, 12:10 am
#6
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Joined: Apr 2010
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Re: UK Pension
H should consult with his employer, as each scheme varies in its T&Cs.
Oct 30th 2013, 12:18 am
#7
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,439
Re: UK Pension
Typically he will have a choice to leave it with his employer's fund manager, or transfer it out into a freestanding private pension. Which is best is a value judgement for your husband and any financial advisor he engages to assist him.
What is absolutely certain is that he will not be transferring it to the US. Despite some abstract and theoretical advice in the UK that private pension funds can be transferred into a QROPS (qualified recognised overseas pension scheme), in practice there does not appear to be any way to achieve such a transfer to the US. And despite a lengthy debate and some fairly robust declarations of intent, as far as I know, nobody here on BE has managed to transfer British private pension funds to the US.
Personally I would doubt the wisdom of doing so even if it was possible as diversification has real value and what better way to diversify risk than to have the funds in a completely different jurisdiction.
His employer will tell him they can't provide individual advice, other than to supply a copy of the terms and conditions, and tell him to find his own financial advisor.
What is absolutely certain is that he will not be transferring it to the US. Despite some abstract and theoretical advice in the UK that private pension funds can be transferred into a QROPS (qualified recognised overseas pension scheme), in practice there does not appear to be any way to achieve such a transfer to the US. And despite a lengthy debate and some fairly robust declarations of intent, as far as I know, nobody here on BE has managed to transfer British private pension funds to the US.
Personally I would doubt the wisdom of doing so even if it was possible as diversification has real value and what better way to diversify risk than to have the funds in a completely different jurisdiction.
His employer will tell him they can't provide individual advice, other than to supply a copy of the terms and conditions, and tell him to find his own financial advisor.
Last edited by Pulaski; Oct 30th 2013 at 12:22 am.
Oct 30th 2013, 9:52 am
#9
Forum Regular
Thread Starter
Joined: Oct 2010
Posts: 66
Re: UK Pension
Typically he will have a choice to leave it with his employer's fund manager, or transfer it out into a freestanding private pension. Which is best is a value judgement for your husband and any financial advisor he engages to assist him.
What is absolutely certain is that he will not be transferring it to the US. Despite some abstract and theoretical advice in the UK that private pension funds can be transferred into a QROPS (qualified recognised overseas pension scheme), in practice there does not appear to be any way to achieve such a transfer to the US. And despite a lengthy debate and some fairly robust declarations of intent, as far as I know, nobody here on BE has managed to transfer British private pension funds to the US.
Personally I would doubt the wisdom of doing so even if it was possible as diversification has real value and what better way to diversify risk than to have the funds in a completely different jurisdiction.
His employer will tell him they can't provide individual advice, other than to supply a copy of the terms and conditions, and tell him to find his own financial advisor.
What is absolutely certain is that he will not be transferring it to the US. Despite some abstract and theoretical advice in the UK that private pension funds can be transferred into a QROPS (qualified recognised overseas pension scheme), in practice there does not appear to be any way to achieve such a transfer to the US. And despite a lengthy debate and some fairly robust declarations of intent, as far as I know, nobody here on BE has managed to transfer British private pension funds to the US.
Personally I would doubt the wisdom of doing so even if it was possible as diversification has real value and what better way to diversify risk than to have the funds in a completely different jurisdiction.
His employer will tell him they can't provide individual advice, other than to supply a copy of the terms and conditions, and tell him to find his own financial advisor.
Thanks for this. I will pass on the info to him. Will he be taxed? Or, will be have to claim it ?
Oct 30th 2013, 11:15 am
#11
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Re: UK Pension
Huzzah!
Oct 30th 2013, 12:24 pm
#12
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Joined: Aug 2004
Posts: 4,754
Re: UK Pension
What type of pension is it, defined benefit or defined contribution?
It might have to be included on FBAR and 8938 forms.
Depending on the pension's exact nature it could well be covered by the US/UK double taxation treaty so that any gains are sheltered from US tax.
If your husband is taking income from the pension (and he is US resident) he will need to file a US-Individual2002 to exempt it from UK tax and make sure he includes that income on line 16 of his 1040 so it can be taxed by the US.
It might have to be included on FBAR and 8938 forms.
Depending on the pension's exact nature it could well be covered by the US/UK double taxation treaty so that any gains are sheltered from US tax.
If your husband is taking income from the pension (and he is US resident) he will need to file a US-Individual2002 to exempt it from UK tax and make sure he includes that income on line 16 of his 1040 so it can be taxed by the US.
