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I am a 23yr old US and UK citizen (US by birth, and UK through family), and was planning on moving to England for ~2 years to help support my grandparents and work.
My question is whether it makes sense to add money towards a UK pension, with the potential of employer matching, if I'm only going to be in the country for a short time. I have ~20K saved up in my U.S. 401k, which I'll be rolling into some form of IRA when I leave the company. However, from doing some searching online, it looks to be near impossible to rollover funds from a UK-based pension plan to a US-based retirement plan. Additionally, I can't make any payments towards my IRAs while abroad, because of the stipulation that you need to be having taxable income to the US. While living over there under $97K a year and with UK's double taxation treaty with the US, I believe I wouldn't be taxed twice for the income made.
I'm not sure if it makes more sense to have that pension for 2 years and then let that money sit there for 50 years until I can take it out, or if I should just open a savings account with a global bank, so I'll have access to the money (and could start contributing to IRA when I return).
Let me know if anyone has any experience with this! Thanks.
My question is whether it makes sense to add money towards a UK pension, with the potential of employer matching, if I'm only going to be in the country for a short time. I have ~20K saved up in my U.S. 401k, which I'll be rolling into some form of IRA when I leave the company. However, from doing some searching online, it looks to be near impossible to rollover funds from a UK-based pension plan to a US-based retirement plan. Additionally, I can't make any payments towards my IRAs while abroad, because of the stipulation that you need to be having taxable income to the US. While living over there under $97K a year and with UK's double taxation treaty with the US, I believe I wouldn't be taxed twice for the income made.
I'm not sure if it makes more sense to have that pension for 2 years and then let that money sit there for 50 years until I can take it out, or if I should just open a savings account with a global bank, so I'll have access to the money (and could start contributing to IRA when I return).
Let me know if anyone has any experience with this! Thanks.