American Pension Maturing

davhill

Hello All,

My wife has a pension fund in the USA which is due to mature in August. I believe it's a 101K.

My wife has UK and US citizenship but has not lived in the US for eleven years now. She'd like to draw the funds in toto, in August but has couple of doubts...

* Should she be paying US taxes on the withdrawal of funds ?

* If US taxes do apply would withdrawing the funds in instalments be less punitive.

Thanks in advance,

DB-H

xylophone

101K.

401K?
http://beginnersinvest.about.com/od/401k/a/aa122104a.htm might be some help here

http://www.hmrc.gov.uk/pensioners/pension-company.htm

davhill

Thanks, Xylophone,

It's a 401K rollover. Using the links you kindly supplied opens two more queries...

*What is the rate of tax imposed, on withdrawing about $98,000?

*Which element of the US Double Taxation agreement applies?

Welcome to the can of worms!!

xylophone

I think that you will need to consult an expert in tax and pensions in different jurisdictions?

I wonder would the firm that produced this http://www.londonandcapital.com/documents/white-paper-us-citzens-non-domiciled-aug-2012.pdf be able to assist?