UK pension transfer to USA
Oct 17th 2018, 12:49 am
#1
Just Joined
Thread Starter
Joined: Oct 2018
Posts: 2
UK pension transfer to USA
Can anyone recommend company that specialize in private pensions in UK and transferring to USA? Thank you
Oct 17th 2018, 1:26 am
#2
Lost in BE Cyberspace
Joined: May 2010
Location: San Diego, California
Posts: 9,651
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.
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.
Oct 17th 2018, 7:56 am
#3
BE Enthusiast
Joined: Nov 2012
Posts: 902
Re: UK pension transfer to USA
Not permitted under US domestic law.
Oct 17th 2018, 10:54 am
#4
Just Joined
Thread Starter
Joined: Oct 2018
Posts: 2
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
Oct 17th 2018, 4:49 pm
#5
Forum Regular
Joined: Apr 2012
Posts: 38
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.
Oct 17th 2018, 4:52 pm
#6
BE Forum Addict
Joined: Apr 2011
Location: The Shire
Posts: 1,117
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 "******".
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 "******".
Oct 26th 2018, 9:11 pm
#7
Forum Regular
Joined: Jun 2012
Location: Seattle
Posts: 90
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
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
Oct 27th 2018, 5:33 am
#8
Joined: Apr 2005
Location: Milwaukie, Oregon
Posts: 9,965
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
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
Oct 27th 2018, 6:06 am
#9
Forum Regular
Joined: Jun 2012
Location: Seattle
Posts: 90
Re: UK pension transfer to USA
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.
Oct 27th 2018, 7:18 am
#10
BE Enthusiast
Joined: Nov 2012
Posts: 902
Re: UK pension transfer to USA
The account will be FBAR reportable if you are required to file an FBAR & 8938 reportable if you are required to file an 8938.
Oct 27th 2018, 7:37 am
#11
Forum Regular
Joined: Jun 2012
Location: Seattle
Posts: 90
Re: UK pension transfer to USA
Thanks Cook County
Oct 29th 2018, 11:30 am
#12
BE Forum Addict
Joined: Aug 2013
Location: Athens GA
Posts: 2,133
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
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
Last edited by MidAtlantic; Oct 29th 2018 at 12:15 pm.
Oct 29th 2018, 10:26 pm
#13
Forum Regular
Joined: Jun 2012
Location: Seattle
Posts: 90
Re: UK pension transfer to USA
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.
Last edited by nearpost1; Oct 29th 2018 at 10:32 pm.
Oct 30th 2018, 12:38 am
#14
Joined: Apr 2005
Location: Milwaukie, Oregon
Posts: 9,965
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.
How financially secure they are I have no idea.
Oct 30th 2018, 12:40 am
#15
Forum Regular
Joined: Jun 2012
Location: Seattle
Posts: 90
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.
How financially secure they are I have no idea.
Thanks
