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UK pension transfer to USA
Can anyone recommend company that specialize in private pensions in UK and transferring to USA? Thank you |
Re: UK pension transfer to USA
If you are thinking of the scheme QROPS (tranferring money from private pension schemes to US) I suggest you do a search on QROPS in this forum.
This question has come up lots of times and I don't remember anyone coming up with a workable solution to being able to do so. |
Re: UK pension transfer to USA
Not permitted under US domestic law.
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Re: UK pension transfer to USA
Thank you for replying, I see there are quite a few companies on social media advertising UK to USA transfer so presuming they are not reputable |
Re: UK pension transfer to USA
While HMRC may have given the ok for a number of companies to accept QROPs, HMRC cannot speak on behalf of the IRS. The IRS has made it clear QROPs are not acceptable. If one were to try, you would find yourself with a whole lot of problems, as it would be viewed as a "non qualified" pension on which you took a distribution of the entire amount subject to tax at your highest marginal rate. Not a pleasant. Also don't think a workaround via a Malta QROPS which some companies promote is an option. It isn't. Best thing, keep your pension in the UK.
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Re: UK pension transfer to USA
In one case, there is an outstanding 'cease-and desist proceeding' filed by the US SEC pertaining to such a scheme.
https://www.sec.gov/litigation/admin/2018/ia-4993.pdf From the June 4, 2018 SEC filing: "Clients are primarily U.S. residents or citizens who held U.K. defined benefit and defined contribution pensions." "[respondent*] provided investment advice to its clients in connection with the transfer of these U.K. pension assets to overseas retirement plans that qualified under the U.K. tax authority's regulations as a Qualifying Recognised Pension Scheme ("QROPS")." Further comments in the filing (articles 17 to 19) are listed under the following heading: "......misrepresentations and omissions concerning QROPS benefits - Statements concerning U.S. and U.K. tax treatment" "[respondent*] made a variety of definitive statements to prospective clients concerning purported tax benefits of the QROPS transfer that were materially misleading." Numerous articles have appeared concerning the filing. * I have used the term [respondent] above since the company involved has prevented use of its name on forums such as BE. Any attempt to post the name will appear as "******". |
Re: UK pension transfer to USA
Rather than start a new thread, I hope it’s ok to digress a little.
I just started to collect my U.K. state pension, which I am allowing to accumulate in U.K. pounds in my Transferwise Borderless account. The money is going to stay there at least until next year. When I file my U.S. taxes in 2019 how will I declare this Income (assuming I must declare it) when it is in a foreign currency. many thanks |
Re: UK pension transfer to USA
Originally Posted by nearpost1
(Post 12583671)
Rather than start a new thread, I hope it’s ok to digress a little.
I just started to collect my U.K. state pension, which I am allowing to accumulate in U.K. pounds in my Transferwise Borderless account. The money is going to stay there at least until next year. When I file my U.S. taxes in 2019 how will I declare this Income (assuming I must declare it) when it is in a foreign currency. many thanks |
Re: UK pension transfer to USA
Originally Posted by lansbury
(Post 12583795)
I have mine paid in to my UK bank account and leave there until I transfer it over. It needs to be declared on your US tax return, regardless of where the money is. It goes on line 16 of the 1040.
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Re: UK pension transfer to USA
Originally Posted by nearpost1
(Post 12583803)
thanks Lansbury, I took a little google since posting, and read that I should apply the exchange rate of the day when funds arrive in my gbp acct, and then declare that amount of usd at filing time. The account will be FBAR reportable if you are required to file an FBAR & 8938 reportable if you are required to file an 8938. |
Re: UK pension transfer to USA
Thanks Cook County |
Re: UK pension transfer to USA
Originally Posted by nearpost1
(Post 12583671)
Rather than start a new thread, I hope it’s ok to digress a little.
I just started to collect my U.K. state pension, which I am allowing to accumulate in U.K. pounds in my Transferwise Borderless account. The money is going to stay there at least until next year. When I file my U.S. taxes in 2019 how will I declare this Income (assuming I must declare it) when it is in a foreign currency. many thanks |
Re: UK pension transfer to USA
Originally Posted by MidAtlantic
(Post 12584596)
I suggest you examine the financial protection provided if you are going to accumulate money in the Transferwise Borderless Account.
account I recall learning that my money is not safeguarded quite as safely as an fdic insured U.S. bank acct or it’s u.k equivalent. However I decided I can sleep soundly because the systems/insurances etc. that do safeguard my money are almost as secure. would anyone care to handicap the safety of money in Transferwise for me. Fdic 100% safe u.k. High st bank 100% safe Transferwise. 95%? 85%? thanks Should add that I understand that nothing is guaranteed in our world, I’m just looking for a sense of how secure folks on here feel about Transferwise. |
Re: UK pension transfer to USA
If Transferwise went bust and they had no assets, unless they have clients money in a “client account” my belief is you would lose all your money. Without searching their web site for the info my recollection is they don’t put the money in a client account. How financially secure they are I have no idea. |
Re: UK pension transfer to USA
Originally Posted by lansbury
(Post 12584973)
If Transferwise went bust and they had no assets, unless they have clients money in a “client account” my belief is you would lose all your money. Without searching their web site for the info my recollection is they don’t put the money in a client account. How financially secure they are I have no idea. Thanks |
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