Trying to wrap my head around some of the nuances of relocating US to UK and hoping someone here can help, or at least point me in the right direction!
I'm a British national who lived for several years in the US (2011-2016). I no longer live in the US and will spend less than 30 days there this calendar year.
I'm considering liquidating my 401k and my brokerage account. I'm 30 years old and don't particularly care to hold onto the retirement account until I'm 60. Here's where I'm looking for help:
1. If I liquidate my 401k as a lump sum today, my understanding is that I will pay the 10% penalty and then the remainder will be classified as US source income for 2017. There won't be any UK tax burden.
2. If I liquidate my US-based (Vanguard) brokerage account, the gains (short and long term) will not be eligible for US Capital Gains Tax, but would be eligible for UK Capital Gains Tax.
Is this right or have I totally messed up?
Alternatively for the retirement account, is there any well established way to move a 401k into a UK pension provider without incurring any crazy fees or tax penalties?