Blacktower Financial Management (US), LLC senior wealth manager Bradley Hamilton manages more than $60 million in assets of the company’s 80 individual clients. Based in New York, Bradley Hamilton leverages his decades of experience in the UK in assisting British expats to navigate various tax and regulatory issues, particularly UK pension transfers in the US.
Just recently, British expats living in the US were allowed to import their UK pension funds through the Qualifying Recognized Overseas Pension Scheme or QROPS. The scheme allows for British citizens permanently living in foreign countries to continue saving for their retirement by transferring their UK pension funds to that of their new country of residence.
QROPS has several benefits for British expats living in the US. It does not require the expat to purchase an annuity. It also allows for the consolidation of multiple pension plans into a single QROPS. Additionally, expats have wider options for investing their funds in the UK, US, or elsewhere. And the expat has the option to pass on all of the remaining funds to his or her spouse and beneficiaries.
However, tax-related issues should be noted since the US government regards UK pensions as very generous. The Internal Revenue Service (IRS) has imposed certain restrictions on UK pension transfers. For instance, the IRS requires expats to report the funds. Any growth in the pension fund or any income derived therefrom may be charged with taxes under the US tax laws.
Bradley Hamilton 