British Expatriate Network

Is is possible to take a UK Pension and roll it into a US 401K Plan...??

Thanks,

Alan

In short, No. I've been through this and was even told I could do it so I filled out various forms and it turns out I couldn't do it afteral. You just have to leave it until you retire. I don't even think you can contribute to it from here.

Be interesting to see how much they pay out in the future.

I've got one with Norwich Union that my company paid into for a couple of years and then I left and came here. No idea what it's worth - keep meaning to write and tell them my current address so hope there isn't some cut off date where they just assume you died or something.

I'd let them know. Natwest Life still send me a yearly statement. Pittance though better than a kick in the nads I 'spose

I have tried to move my UK pension a number of times with various US employers. It's not the USA system (410K etc) it’s that the UK requirements are the receiving plan must be Qualifying Recognised Overseas Pension Scheme (QROPS)

401K plans doesn't meet those requirements, they are then called Non Qualifying Overseas Pension Schemes (NQOPS)

Please also be aware that the remaining pension typically can't be touch/accessed until you reach the minimum retirement age (currently 50 years) and some plans (if not all) are rising that age to 55 in 2010

And finally - You need to be aware there are annual management charges on your pension and as such, the value of your pension may decrease (as you can't typically added to you UK pension when in the US) by the time you reach the minimum retirement age.

Good point!

http//www.hmrc.gov.uk/pensionschemes/qrops.pdf

There are many IRAs and 401k's listed. If yours is not there, it doesn't mean it doesn't qualify - it just means no-one has gotten round to asking for it ot be added. Since all IRAs and 401k's are legally identiucal in the US, I take this to mean ALL qualify as QROPS

Hooray at last!

http//www.hmrc.gov.uk/pensionschemes/qrops.pdf

Since all IRA's and 401k's are legally the same, you can rollover a British pension to ANY IRA or 401k

In theory -
BUT – try doing it!!
There appears to be a difficulty with the IRS allowing a ‘tax free’ transfer into the USA. The US providers seem willing but with four enquiries so far the effort has come to nought. Anyone with further information?
T

I am an offshore IFA based in Zurich and one fo the things I constantly speak to clients about is arranging the transfer of frozen UK pensions into QROPS schemes. They offer the pension holder a place to put all thier frozens pensions into the same place and I put this into a offshore portfolio bond meaning it is tax efficient and it makes your pension balance your asset.

Obviously there are annual charges like any bond but it is better than having to pay for an annuity etc on realisation.

If anyone wants more info, let me know....