How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Megan C Your Own Question
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
23669918
Type Your Tax Question Here...
Megan C is online now
A new question is answered every 9 seconds

I have a 401K pension plan, but Im thinking of moving back

This answer was rated:

I have a 401K pension plan, but I'm thinking of moving back to the UK to work and then retire (I'm a UK citizen, and currently have a green card). Is it possible to transfer 401K to the UK without any tax penalty? If not, can I still start using it without any tax penalty once I'm 59 and a half, and are there any UK tax implications for this?

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

How are you today?

MyVirtualCPA :

Currently, there's no way to "rollover" your retirement assets from an American plan into a UK plan, so you would still have the US plan to draw from during your retirement years

Customer:

But when I start drawing from it once I'm retired, will I be subject to US tax and/or UK tax?

MyVirtualCPA :

You would follow all the same rules, such as being able to draw at age 59.5

MyVirtualCPA :

It's taxed in your country of residence, which would be UK under article 18

Customer:

Is the amount I draw then treated like income from a UK tax perspective

MyVirtualCPA :

That is correct, but you would not be taxed on it in the US

Customer:

That's great. That's what I wanted to know. Many thanks

MyVirtualCPA :

You're welcome

MyVirtualCPA :

Please take a moment to rate my response as "excellent" so that I may receive credit for assisting you today

Customer:

Presumably the same applies to my US company pension plan. (not that it's very much!)

MyVirtualCPA :

Yes, that would be the same treatment

MyVirtualCPA :

same article

MyVirtualCPA :

Article 18

Megan C and 2 other Tax Specialists are ready to help you
Thanks, Peter for your positive rating. Please come back and visit MyVirtualCPA for any of your tax, finance, and social security needs. It was a pleasure working with you today.

Related Tax Questions