401K Roll Over

[bonnie_ds]

What is the name of your state?
Illinois

Hi, I had a pension plan while I lived and worked in the U.K. However I have now moved and settled in Chicago and work here. How can I transfer my pension plan from the U.K. to the U.S. What are my options. The company I work with currently has a 401K plan but won't rollover any non USA plans.

Thanks for your help,

[abezon]

You can't. Only funds held in a "qualified plan" can be rolled into a new employer's 401k, and there are no foreign qualified plans. (Unless you work for a foreign branch of a US company.)

You did not specify if you are a US citizen or not. In either case, you have a "basis" in the UK plan. If you're a US citizen, your basis is the amount of money you contributed and the yearly earnings within the plan that were included on your tax return. (Amounts must be converted using the rates in effect when the contributions were made/earnings posted.) If you aren't a citizen, your basis is the fair market value of the plan assets on the day you became a US resident for tax purposes (got a green card or met the substantial presence test). When you finally start pulling money out of the UK pension, you can exclude some of it from your US income & claim a foreign tax credit on the taxable portion.

You should also check the UK tax treaty to see if there is special tax treatment of foreign pensions.

BTW, if you haven't saved every statement from the pension plan, start gathering duplicates now while it's still relatively easy.

You should also check the totalization agreement with the UK ([url]www.ssa.gov[/url], I believe.)

[bonnie_ds]

Originally Posted by abezon

You can't. Only funds held in a "qualified plan" can be rolled into a new employer's 401k, and there are no foreign qualified plans. (Unless you work for a foreign branch of a US company.)

You did not specify if you are a US citizen or not. In either case, you have a "basis" in the UK plan. If you're a US citizen, your basis is the amount of money you contributed and the yearly earnings within the plan that were included on your tax return. (Amounts must be converted using the rates in effect when the contributions were made/earnings posted.) If you aren't a citizen, your basis is the fair market value of the plan assets on the day you became a US resident for tax purposes (got a green card or met the substantial presence test). When you finally start pulling money out of the UK pension, you can exclude some of it from your US income & claim a foreign tax credit on the taxable portion.

You should also check the UK tax treaty to see if there is special tax treatment of foreign pensions.

BTW, if you haven't saved every statement from the pension plan, start gathering duplicates now while it's still relatively easy.

You should also check the totalization agreement with the UK ([url]www.ssa.gov[/url], I believe.)

Do you know if I can convert it into a 401K?

[bonnie_ds]

Sorry I meant, do you know if I can convert it into an IRA / Roth IRA. Thanks