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Transfer of UK Pension to the US

On Lawyer & Legal » Immigration Law

4,598 words with 3 Comments; publish: Tue, 07 Sep 2004 07:44:00 GMT; (80066.41, « »)

I am trying to transfer my UK occupational pension scheme to the US.

The UK pensions agency says that this can be done but the scheme it

transfers into must be equivelent or better than the current scheme.

I have spoken to a couple of Banks and they dont have a clue what i am

talking about or how to do it.

Can anyone put me in touch with someone that can transfer my pension

plan, or advise me on how to do it.

I would appreciate any help or advise.

Allan

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Posted via http://britishexpats.com

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  • 3 Comments
    • I am trying to transfer my UK occupational pension scheme to the US. The UK pensions agency says that this can be done but the scheme it transfers into must be equivelent or better than the current scheme. I have spoken to a couple of Banks and they dont have a clue what i am talking about or how to do it. Can anyone put me in touch with someone that can transfer my pension plan, or advise me on how to do it. I would appreciate any help or advise. Allan

      Played with this for a long time but got nowhere. I have a small local

      government pension stuck back in Blighty that was too small to throw

      away but not large enough to excite anybody.

      The conclusions I came to were that it was totally impossible under

      current US legislation to transfer it into any US 401(k), 403(b), IRA or

      similar scheme. The only possibility is to have it paid out when the

      time comes from the UK and then use the double-taxation treaty between

      UK and US to minimize the tax consequences.

      It was possible to liberate it from UK local government or company

      pension funds into a SIPP pension so I would have more control and get

      more realistic returns. I tried a US-based company at

      http://www.ukpensionrescue.com/ who certainly provided solutions, but at

      too high a maintenance cost to offset any potential gains. For bigger

      pots, their scheme may be viable. There is also the added complication

      that under new legislation the US government is currently preventing US

      citizens and residents from dealing in UK shares. I have yet to discover

      whether this will prevent me from transferring my UK pension into, for

      example, http://www.sippdeal.co.uk/.

      Would be v. interested on more info about UK Pensions Agencys take.

      --

      Posted via http://britishexpats.com

      #1; Tue, 07 Sep 2004 10:48:00 GMT
    • I am trying to transfer my UK occupational pension scheme to the US. The UK pensions agency says that this can be done but the scheme it transfers into must be equivelent or better than the current scheme. I have spoken to a couple of Banks and they dont have a clue what i am talking about or how to do it. Can anyone put me in touch with someone that can transfer my pension plan, or advise me on how to do it. I would appreciate any help or advise. Allan

      Allen, I just sent you a PM with some details

      fyi: we don't use the word 'scheme' in the US, it does have a negative

      connotation in regards financial dealings.

      This is probably not something that you would do with a bank, but with a

      financial planner, or potentially, a good CPA (accountant).

      --

      Posted via http://britishexpats.com

      #2; Tue, 07 Sep 2004 11:00:00 GMT
    • Allan Nelson wrote:

      I am trying to transfer my UK occupational pension scheme to the US. The UK pensions agency says that this can be done but the scheme it transfers into must be equivelent or better than the current scheme. I have spoken to a couple of Banks and they dont have a clue what i am talking about or how to do it. Can anyone put me in touch with someone that can transfer my pension plan, or advise me on how to do it. I would appreciate any help or advise. Allan

      In all probability you won't actually be able to do it, although in

      theory it could be done. The problem is that most US pension schemes

      are simply "money purchase" as opposed to service value schemes.

      Moreover, it's so rarely done, your chances of finding anyone with a

      clue are less than the square root of zero.

      The best plan is to hold the existing plan until retirement and use it

      as a "part of a multi-source pension" scheme. The idea of consolidated

      pensions is not done in the US. You normally cannot "buy in" which is

      essentially what you're trying to do.

      Also, a lot of pension schemes in the US are actually tax sheltered

      savings schemes, which are contribution limited. You can't transfer

      funds into these except to roll from one into another.

      #3; Tue, 07 Sep 2004 08:46:00 GMT