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MyVirtualCPA, Accountant
Category: Finance
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Experience:  CPA with Master's Degree in Accounting
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I have recently relocated back from the US to the UK after

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I have recently relocated back from the US to the UK after working for three years in Atlanta Georgia. I have contributed to a company 401k scheme in the US and now I want to know what my options are for transferring the 401k to a UK approved pension scheme.
I have approx $100k in the 401k.
I think my options are:
1. Leave it investing in the US and start taking taxable income from it when I am over 59.5 years old - 5 years from now;
2. Cash it in before I am 59.5 and be taxed on the pot at my current higher tax rate and transfer to the UK; then pay into a HMRC approved pension scheme or otherwise invest.
Are these two options coorect and do I have any other options?
Hello,
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Nicola
Customer: replied 2 years ago.
I am ok to continue to wait,
Thanks,
Malcolm

Thanks, ***** ***** your question. You are correct - those are your two options. Since the money was tax deferred in the US, the US is going to want tax on it one way or another - either when you are 59.5 and start taking withdrawals or if you withdraw now. There's no way to get the funds to another country and retain the tax deferred status in the US. I wish there were other options.

Please let me know if you need anything additional. If not, please rate positive.

MyVirtualCPA, Accountant
Category: Finance
Satisfied Customers: 16632
Experience: CPA with Master's Degree in Accounting
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