# Expat in the USA - What to do with your UK Pension?



## tomben (Dec 31, 2008)

I've just found out I have a small amount (4K) in a UK Pension fund and I am wondering what my options are?

Can I withdraw it and get the cash less tax? If so what would the tax % be?
Can i transfer it to a fund here in the USA (Roth IRA, 401K) without paying tax? 
Or would it be best to leave it be, in case i ever move back to the UK? If i leave it as is would it pay out to USA if i am still here?

It would be great to hear from anyone who has had an experience in dealing with this


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## coolbadger (Sep 17, 2008)

tomben said:


> I've just found out I have a small amount (4K) in a UK Pension fund and I am wondering what my options are?
> 
> Can I withdraw it and get the cash less tax? If so what would the tax % be?
> Can i transfer it to a fund here in the USA (Roth IRA, 401K) without paying tax?
> ...


I am not sure but I think it depends what age you are.

I recently transferred my UK pensions into annuities and now recieve a regular monthly income. That was from age 50.

But I think for lower amounts you can take it all cash.

If you are younger then I really do not know the procedure. But I am sure someone does know!


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## tomben (Dec 31, 2008)

coolbadger said:


> I am not sure but I think it depends what age you are.
> 
> I recently transferred my UK pensions into annuities and now recieve a regular monthly income. That was from age 50.
> 
> ...


I'm 37 so the annuities is not an option at the moment but i can consider leaving it until I'm 50 and doing that. 
I'm not sure what 4k will grow (or shink ) to in that time.


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## coolbadger (Sep 17, 2008)

tomben said:


> I'm 37 so the annuities is not an option at the moment but i can consider leaving it until I'm 50 and doing that.
> I'm not sure what 4k will grow (or shink ) to in that time.


Lets just say it will not be enough to retire on!


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## Fatbrit (May 8, 2008)

tomben said:


> It would be great to hear from anyone who has had an experience in dealing with this


I've got GBP 20k lying in one from the days before I left. After much research and communication I got absolutely nowhere.

There was a UK initiative called, if I remember correctly, QUORPS....or something like that which would allow you to transfer your UK pension into an overseas scheme. However, the IRS didn't seem to be playing ball the last time I looked.


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## Bevdeforges (Nov 16, 2007)

tomben said:


> I've just found out I have a small amount (4K) in a UK Pension fund and I am wondering what my options are?
> 
> Can I withdraw it and get the cash less tax? If so what would the tax % be?
> Can i transfer it to a fund here in the USA (Roth IRA, 401K) without paying tax?
> ...


If it's a private pension fund, you may just want to leave it where it is. If you can put additional funds into it, that wouldn't be a half bad idea - but you'll get no advantage on your US tax returns. (I.e. you can't treat it like an IRA or 401K).

You can't transfer it to the US as a 401K or IRA. You can only establish those from earned income which is taxable in the US (or in the case of the Roth IRA - I think you need to have already paid US income tax on the funds, but I'm not all that up on Roth IRAs).

There is no reason that the pension fund wouldn't pay out to you in the US if you're still there when you take your retirement. You'd have to pay US taxes on it when you get it paid out to you (as an annuity) but that's pretty much standard for a "foreign" pension anyhow.
Cheers,
Bev


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## tomben (Dec 31, 2008)

Ok thanks everyone, I leave it alone and hope it pays for a few pints a week when I'm retired.


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## Fatbrit (May 8, 2008)

tomben said:


> Ok thanks everyone, I leave it alone and hope it pays for a few pints a week when I'm retired.


At 4k it would be fun to get it into something like a SIPP where you could actively trade it.


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