I have 33000 GBP with a uk pension provider. I am non resident for uk tax as I work offshore Gulf of Thailand. Can I transfer this money into a 401K fund and if so what would be my tax exposure?

I am an American citizen who has been resident in the UK since 1974. I am intending to return to live in US sometime in 2009. I am still employed and I will be applying for social security in October 2009 three months before my 66th birthday.

My question has to with the offset that I believe will apply against my social security. When I retire I will be eligible for both my employment pension which I estimate at approximately $25,000 per year as well as a state pension of $7800. What will the offset be approximately against social security. Also is there a UK/USA tax treaty that might affect this. I should add that I am working for a UK government agency.

Many thanks for any replies

I have 33000 GBP with a uk pension provider. I am non resident for uk tax as I work offshore Gulf of Thailand. Can I transfer this money into a 401K fund and if so what would be my tax exposure?

Hi Alan

No U.S. retirement scheme (401K, IRA etc.) can accept a transfer from a U.K. pension scheme. The reason is that U.S. based schemes are regulated by IRS rules and can only receive "qualified" funds in. This means that they can only accept funds from other U.S. 401k or IRA schemes.

The QROPS we represent are based in E.U. countries although the member can live in the U.S. or anywhere. Transfers typically take 4-6 weeks from start to finish.

Let me know if you have any more questions.

Andrew Lambert
QROPS Manager
Windsor Pensions
Windsor Pensions - Home (http://www.windsorpensions.com)