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US Pension To UK

US Pension To UK

Old Mar 17th 2019, 7:15 am
  #1  
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Default US Pension To UK

Hi all,

I have had a browse around, and although I am sure there is a thread that relates to this I cannot find it. If there is, apologies and please point me to it!

I am a Brit who has lived and worked in the USA for 7 years. My wife (US citizen) has a substantial pension and from what I can see if she moves it to the UK she will be subject to a 30% tax on the USA side.

Can anyone provide any insight on the best way to transfer a US pension to the UK.

Any info much appreciated.
Thank you,
Rob
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Old Mar 17th 2019, 6:46 pm
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Default Re: US Pension To UK

Incompatible systems.
You can't really move the pension.
If she takes it out/transfers the cash, she'll be taxed. Possibly penalties depending.
Leave it where it is and access when allowed by the plan policy and IRS rules.

Some companies may mention QROPS and claim they can do this for you but don't be tempted, they just want to charge you fees and won't be able to do this.

Last edited by Hotscot; Mar 17th 2019 at 8:45 pm.
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Old Mar 21st 2019, 5:24 pm
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Default Re: US Pension To UK

We kept a US bank into which my US pensions are paid and which is linked to our brokerage accounts holding our IRAs. Our son, in his late 30s, did the same in 2017 when he moved back to the UK. Rather than try to move his 6 figure IRA he is keeping it in his brokerage, linked to his US bank account. It should be a nice pot of money available for withdrawal with no penalty once he hits age 59.5. (He rolled over his 401k to an IRA immediately after he quit his job to move to England).
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Old Mar 22nd 2019, 2:29 am
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Default Re: US Pension To UK

Good move.
That's the way to do it.
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