Scotty88

When quoting 625, SS just asked for paper work from the other agencies to show amounts didn't say anything about WEP.

Thank you very much lansbury and MMcD.

Scotty88

Yes, just checked the chart, WEP is 408. What a rip-off !!! Will call them this week but appears not worth the aggravation.

Thanks Again.

MMcD

But remember... WEP deduction can't exceed 50%.

So deduction of $408 would mean SS payment before deduction would have had to have been over $816mo.

(At least I think that's correct )

lansbury

The chart is only a guide. Put all the figures into the WEP calculator, it will give you a very accurate estimate of what your SS should be.

UK2US1979

US contributions( credits) are taken only to qualify one for the UK pension. UK pension is still calculated at the number of years worked in the UK. US credits do not increase the UK pension benefits. Someone correct me if I am wrong.

WEBlue

I believe this is true.

I know the reverse is true--UK work credits (years) can help qualify one for US Social Security IF one would be otherwise unqualified... but those UK credits do not change the amount of SS one receives (still based on US work earnings).

Scotty88

Thanks WEBlue, as they say, it's all Greek to me!

UK2US1979

I have a question re International Pension Direct Payment and wonder if members who are receiving this in the US could provide some information. Based on previous comments, I understood it to be treated as an ACH payment in the US and hence not subject to any fee. I spoke with a representative of my bank and she told me that even though it is a direct payment into your account, because it is coming from the UK, it would be treated as a Wire Transfer and hence subject to a fee of $15. Doesn't sound fair! Of course there are certain types of premium checking accounts where even the Wire Transfer fee is usually waived by the banks. I recall, a couple of individuals previously posted here that their bank was not charging any fee on such recurring transfers. Do any such individuals have a regular checking account or a Premium type? any thoughts?

Of course, I have not spoken to the branch manager yet.

lansbury

My first thought is are you sure the payment is coming from the UK. For some reason I thought the payment originated in the US.

My Chase checking account which has no wire transfer fees, in or out, is a Private Client account.

Sailortobe

Are you talking about the UK state pension or a private UK pension? I just started receiving a private pension - no fees. My State pension begins sometime this month - so I can't help with that. I'll be in touch when it happens and let you know if there are any fees.

UK2US1979

Interesting question. Pity, I was not aware of this issue when I talked with the UK Pension Officer who called very early this morning confirming the Lump Sum amount. I could have asked her where such deposits were originated. But you may be right because the funds are transferred in $$. If so, the fee may be a mute point.
Yes, Your "private client checking account" would be exempt from wire transfer fee as this is a premium type. I used to have one such account.

Turning to a different point, the Pension officer confirmed that the Pension and Lump Sum are paid without dediction of UK taxes. She further said that she will make a notation on my Pension account to the effect that I am a US citizen and file US taxes. I had also called the HMRC a couple weeks back inquiring as to the status of my account. She said, there was nothing on my account since I left the UK. She did say I should write a letter to HMRC stating that I am a US citizen and file my tax returns in the US. Also that I have no other source of income in the UK except the upcoming pension. Then they will note this on my account. So, at least for now, it seems I don't have to file form 2002 etc. That saves apprx $100 that IRS charges here for the form.

UK2US1979

Talking of UK State Pension. But it doesn't really make a difference whether the deposit is related to private or state pension if originated in the UK. Do you have a regular type ( basic) checking account or one of those premium checking accounts where transactions such as wire transfers are fee free?

nun

Good point.

If the only UK pension you have is the State Pension there is no need to file US-International 2002 as, by default, there is not UK tax withholding and as a US resident it has no UK tax liability at all.

UK2US1979

On second thought, required information in Part 9 re IBN ( International Bank Account #) suggests that it originates in a country other than the US. Not quite sure about it though.

UK2US1979

My letter to the IRS should have reached there by now. In a few days, I will call again to confirm that no other document/form is required for the exemption. You see, my pension and the lump sum is going to be in excess of the annual personal allowance. Initially she mentioned "self assessment" but wasn't quite sure about it. To me, it sounds silly to file Self assessment only to file another one to get the refund as it has already been subject to the US taxes!