What should I do with my 401k or Pension Pot?

I am a US Citizen and I am moving to the UK at the end of the year with my UK Citizen partner.

I am wondering what I should do with my 401k and pension pot. I understand there are penalties but I have debts which could be paid off with this but also some other potential options:

Approx. amounts:
401k: $14000
Pension Pot: $3000

Options so far:

1) Leave it and collect at retirement.

2) Transfer to IRA and use towards a first-time house buy (I think this is up to $10,000 but this would only work if the IRS allows this to be used on a house in the UK - Does anyone know the rules on this)?

3) Withdraw as cash and take the tax hit + 10% penalty. (Pay off credit card debts and allow for some financial slack while I move).

4) Does anyone know of any better options?

It is tempting to withdraw but would be perfect if I could use towards a first-time buy in the UK. Any help or knowledge on this would be greatly appreciated.

Thanks!

Our son is moving to England later this year and will be moving his 401k to an IRA initially. I hadn't thought about the house deposit option as he will be buying one here.

Before you leave the USA roll the money into a traditional IRA with Vanguard and also open a ROTH IRA so you can contribute to that while you are in the UK. Try to keep the money for retirement.

My partner was advised to roll hers over into a UK account as the company also had a UK base, and she could continue to contribute here. I'll have to find out if that's an IRA, and also if that's her best option. The 401K is only employment based right? Bit confused about whether hers will stay as 401K if transfered. I did find out on another thread that for FLR(M), 401K can be used towards meeting financial requirement (as long as say willing to pay penalty to access instantly if needed). If the amount is used as deposit on house it will not count towards financial requirements. If it was me, I'd be weighing up the cost of interest on existing debt against the tax penalty on 401K.

My partner was advised to roll hers over into a UK account as the company also had a UK base, and she could continue to contribute here.

401ks cannot be "rolled over" to the UK. Taken at face value the advice is ridiculous and could land you in serious tax complications if attempted.

I'll have to find out if that's an IRA, and also if that's her best option. The 401K is only employment based right? Bit confused about whether hers will stay as 401K if transfered.

If your partner is on a short term (less than 5 years) intra company transfer between the US and the UK then it is possible to continue to pay into the US 401k. But if that is not the case the best option is to roll the 401k into an IRA.

Paying off debt is important, but so is avoiding a 10% early withdrawl penalty and using money that you will need in retirement. So try to keep the money in the IRA until 59 1/2 and use other money to pay off the debt. It would be sensible to reduce retirement savings and use the money to pay of the debt.

401ks cannot be "rolled over" to the UK. Taken at face value the advice is ridiculous and could land you in serious tax complications if attempted.

If your partner is on a short term (less than 5 years) intra company transfer between the US and the UK then it is possible to continue to pay into the US 401k. But if that is not the case the best option is to roll the 401k into an IRA.

Paying off debt is important, but so is avoiding a 10% early withdrawl penalty and using money that you will need in retirement. So try to keep the money in the IRA until 59 1/2 and use other money to pay off the debt. It would be sensible to reduce retirement savings and use the money to pay of the debt.

Thanks, I did suspect the advice she was given by her employers was unsound.

Did you say keep in IRA until age 59 1/2 (that's 2.5 years for my partner). What are the options aged 59

Thanks, I did suspect the advice she was given by her employers was unsound.

Did you say keep in IRA until age 59 1/2 (that's 2.5 years for my partner). What are the options aged 59

At age 59 1/2 she can take out money from the IRA with no 10% early withdrawal penalty.  If any withdrawals are made before age 59 and 6 months then a 10% penalty will be applied.

At age 59 1/2 she can take out money from the IRA with no 10% early withdrawal penalty.  If any withdrawals are made before age 59 and 6 months then a 10% penalty will be applied.

Thanks