UK SIPP that works for US resident?
 

I am looking to transfer an old pension fund into a UK SIPP from which I can take drawdowns over the next few years while resident in the US (been here 20+ years). I am dual UK/US citizen.

I started to open a SIPP at AJ Bell, but the account creation requires a UK Bank acccount for distributions. I can't open a UK bank account as I am not UK resident.
I found myexpatsipp.com who specialize in expat SIPP and can make distributions to a Non-UK bank account (according to their website).

myexpatsipp.com seems to have linited (only 5) investment options. I would prefer more options such as fixed Gilts/Bonds.

Does anybody have a SIPP with myexpatsipp.com and can offer recommendation (or not)? Any other SIPP provider options that will allow payment to Non-UK bank account?

Re: UK SIPP that works for US resident?
 

I transferred to AJ Bell SIPP as a US resident, but with the benefit of having retained my UK bank account (although I am far from taking distributions). One solution may be the Transferwise Borderless Account. This provides a UK sort code and bank account #.
https://transferwise.com/us/borderless/

Re: UK SIPP that works for US resident?
 

Thanks MidAtlantic. I was able to setup a borderless account in the UK and was able to use this for my AJ Bell SIPP account setup. I think this might be the solution.

Re: UK SIPP that works for US resident?
 

It sounds to me that you're real question is: which UK bank allows you to open an accounts as a non-resident. I would imagine some do.

Maybe Revolut would be an option.

Re: UK SIPP that works for US resident?
 

Anyone using Revolut be aware:

https://www.bbc.com/news/technology-47751945

Re: UK SIPP that works for US resident?
 

I have had a revolut card / account now for 6 months plus and it has proven to be excellent. I can put £ on from my UK bank instantly and then convert and hold a variety of currencies - so far used Moroccan Dirham, Euro and US $. The exchange rate you get is a live rate and is the interbank rate so a good rate - You can track the rates and set alerts if you want to. When you use the card it works as a prepaid credit card with no transaction fee. I have also used it to get local currencies from an ATM. You get an instant text message when you use the card and as it is a phone App you can set it so it only works where your phone is for added security . I have also used it to transfer $30K to a USA account and that worked fine too. The report about compliance is an issue which they need to deal with but as a transaction system it works well for me.

Re: UK SIPP that works for US resident?
 

'I am looking to transfer an old pension fund into a UK SIPP from which I can take drawdowns over the next few years while resident in the US'

Tony..what's the perceived benefit of doing this? Accessing your pension early?

Re: UK SIPP that works for US resident?
 

Hi All,
What is the best UK SIPP for non-UK resident?
On google I found myexpatsipp and AJ Bell on this forum but I don't know how to choose. Any advice?
thanks

Re: UK SIPP that works for US resident?
 

From a reporting perspective, you'll already be disclosing the existing UK pension plan on an 8938 every year, plus most likely possibly an FBAR. The proposed SIPP may be reportable as a foreign grantor trust. This is an old argument, search the forum for other discussions if you are unclear.

Re: UK SIPP that works for US resident?
 

I use AJ Bell and they are very good.

Any questions please ask.

Re: UK SIPP that works for US resident?
 

Which I think will make you more unclear!

Re: UK SIPP that works for US resident?
 

Thanks! I think I will go with AJ Bell as they look cheaper

Re: UK SIPP that works for US resident?
 

Can I transfer my final salary pensions to AJ Bell SIPP and manage it directly as a UK/US citizen? I have a UK bank account.
I understood that you have to use a 3rd party independent adviser to manage the SIPP. Is this incorrect?
What are the steps I need to take to make the transfers happen?
Thanks in advance for your help.

Re: UK SIPP that works for US resident?
 

IF, and it is a big IF, you can transfer into A J Bell then you can self manage the SIPP as a US resident. However if your final salary pension is valued at more than 30,000 GBP then you require proof of the legally required advice from an IFA authorized to provide that advice before they will accept the transfer. A J Bell are a no frills broker and provide no assistance in obtaining that advice. The requirement for advice only applies to each individual pension not the collective total. So as an example if you had three pensions valued at 25,000 GBP each for a total of 75,000 they would accept all of those without advice.

Getting the required advice as a US resident is extremely difficult, refer to the https://britishexpats.com/forum/usa-...ansfer-932342/ thread.

Re: UK SIPP that works for US resident?
 

I have a defined contribution pension that has bounced around many pension companies in the UK as they each exited the market so I have never been confident in the money. Now, it looks ok and plan to move to ExpatSipp or AJBell but I have never filed FBAR paperwork (my oversight - nevr knew I had to prior to any distribution). Is there a Mia Culpe process with IRS - any one have experience?

Re: UK SIPP that works for US resident?
 

It is not the IRS but the Treasury Financial Crimes Enforcement Network: https://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html
On the dropdown menu on the first page there are options for late filing. I believe one says something like "I didn't know I had to file". Just go ahead and complete it and use that reason.

Re: UK SIPP that works for US resident?
 

I would only add that you should also file for prior years going back as far as the year ending 12/31/2015 or as many of those that apply. The reason is that the statute of limitations for FBARs is 6 years and filing those years will bring you into full compliance. The deadline for the year ending 12/31/2020 is April 15th, although you get an automatic extension until October 15th, but you might as well get on with it and move on with your life.

Re: UK SIPP that works for US resident?
 

I have been told by a Expat CPA firm that I can back file FINBAR 7 years and they say no penalties are expected. They have never known anyone that has been assessed for penalties if you just say "didn't know I had to" - they offered to file for $100 per year - is this prudent to show willingness to comply, the forms look simple just put off by the agency name - National Financial Crimes Agency

Re: UK SIPP that works for US resident?
 

A handful of people have been assessed penalties for not filing FBARs but those are the big fish that were deliberately hiding extremely large sums of money, generally many millions, and those are the people that this whole process was designed to catch. To the best of my knowledge no regular Joe has ever been penalized on FBAR non compliance. All of the communications regarding severe penalties are accurate but they are at the discretion of the IRS and are mostly used as a tool penalize criminals, people deliberately hiding accounts and those who facilitate money laundering. But they are also used to ensure compliance by scaring everyone else to death. And it works. Many of the expat professional services reference these potential but unlikely penalties ad nauseum. Your CPA seems to one of the few good guys presenting a clear picture. You can back file FBARs for 6 years, 7 if you include the current year, with no penalty if you have declared and paid US tax on all foreign accounts. You can independently file current and prior year FBARs online at no cost very easily, it is a very simple form.

The real issue now is with Form 8938 that needs to be filed with your tax return if you meet the threshold. Foreign accounts, pensions, annuities, life insurance and just about any foreign financial investment must be declared (even if there is no current income) if the aggregate total of those accounts meets the filing threshold. There are similar penalties to the FBAR if you fail to file that form, and they are much more likely to be enforced. So you need to become compliant there as well if appropriate. If you are delinquent on Form 8938 then you can correct it by filing amended returns using the IRS Domestic Streamlined program, however, unless you can prove that you were non resident for at least one of the prior 3 years then they will penalize you by 5% of the maximum account value. Hopefully your defined contribution pension value did not trigger the need for Form 8938.

Re: UK SIPP that works for US resident?
 

My pension would have triggered the need for the form 8938 - it has been largely dormant for many years and stuck in a group policy. I have been resident in the US for 33 years and the pension has not been contributed to since that time.
Sounds like I have an issue, do I just assume the 5% penalty and get on with it or is it worth finding a suitable CPA that will do this for me, are they likely to do any better?
I really appreciate all your help

Re: UK SIPP that works for US resident?
 

Sent you a PM with details specific to you, but in short, and for others in the same situation.

It all depends upon how risk averse you are.

The first option is to fix the situation using the Streamlined Domestic Offshore Procedure, SDOP. They WILL penalize you 5% of the maximum value of your account, and you will likely have to pay someone to manage this process for you. However, it will give you immediate piece of mind that the matter is resolved.

The second option is to do the same thing outside of the SDOP which is an option provided by the IRS. https://www.irs.gov/individuals/inte...ion-procedures. It is basically the same process but the IRS reserves the right to apply the relevant penalties for failing to file Form 8938 (which the SDOP waives in return for the 5% penalty). The IRS may apply no penalty for a variety of reasons but they could potentially apply a penalty well in excess of the guaranteed 5% that comes with the SDOP

So you have to pick your poison.Go with the first option with a known cost and immediate piece of mind, or the second option an an unknown cost, possibly zero possibly a lot more and the uncertainty of knowing whether or not you have a penalty at all for up to the 3 years that they have to audit your amended returns.

Re: UK SIPP that works for US resident?
 

As this is a SIPP, are you able to invest in UK funds offered by AJBell and avoid any PFIC complications?
Or do you only invest in individual companies?