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1
US - UK Taxes / Re: US Money market funds
« Last post by durhamlad on Yesterday at 09:03:02 PM »
I am in a very similar position and hold money market accounts at VG US. I will continue to declare the interest to both the IRS and HMRC and pay taxes until I’m told otherwise. The dividends I get from my Vanguard ETF is different in that I get the lower IRS and HMRC rates.
2
US - UK Taxes / US Money market funds
« Last post by taxi on Yesterday at 08:10:15 PM »


UK Yankee-

Regarding my US brokerage account at Vanguard (VG): I am a USC residing in the UK for 20+ years and file both US and UK Income Tax forms.

VG(US) currently has my Settlement Account in their Federal Money Market Fund. In addition, I also have some funds in their Cash Reserves Federal Money Market and Treasury Money Market Investor.

Would these funds be considered unregistered mutual funds and not eligible to be held by me? If yes, what would be an appropriate alternative at VG?

Thank you.

-Taxi

3
US - UK Taxes / Re: TIAA-CREF tax issue and contact issue
« Last post by dunroving on Yesterday at 05:25:29 PM »
Quote from: nun on Yesterday at 12:20:35 PM
Yes there are definitely differences in the contracts between employers, but having to wait to age 72 to start the payout annuity seems strange. It might be helpful to check with your old employer's benefits department. I'm currently trying to decide between the 10 year payout annuity and a lifetime annuity. Most people will be better off with the payout annuity if they invest it sensibly, but TIAA quoted me a 9.5% payout rate on a lifetime annuity and I'm only in my early 60s so that's tempting.

Very helpful, thank you! I'll post back whenever I've learned more.

A 9.5% lifetime annuity is pretty damn good (even though I assume this doesn't not include annual COLA increases). I'm 67, and contributed to TIAA from 1996 to 2006 (although all the TIAA Trad contributions were made from 1996-1999).

The capital I have in TIAA Trad isn't huge, but enough that it makes sense to look into these options. I'd really like to tie a bow around this and not have it hanging there while I continue to receive interest-only payments.
4
Healthcare and Insurance / Re: Me
« Last post by phatbeetle on Yesterday at 03:37:30 PM »
Been wondering how you've been. Missed you around here!  Glad the new treatment is working!  Sounds like you're just soaking in life as much as you can  [smiley=heart.gif]
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US - UK Taxes / Re: WEP and voluntary WEP contributions
« Last post by Barcrest on Yesterday at 02:03:19 PM »
With regards NI. There maybe a calculation based on SERP. This though would mean you’d need to contribute more years to make up the full weekly pension amount. I see that in your circumstances this isn’t correct though. A bit of a mystery…
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US - UK Taxes / Re: TIAA-CREF tax issue and contact issue
« Last post by nun on Yesterday at 12:20:35 PM »
Quote from: dunroving on Yesterday at 09:21:24 AM
Thanks, Nun. I've checked my messages and TIAA said I couldn't use the 10 year payout until age 72, because of the TN-specific contract. It wouldn't be the first time they have incorrectly advised me, though!

I'll get back in touch and ask the question again - also will enquire about an annuity.

My beneficiary is actually a colleague in the US, so UK/US tax issues shouldn't be an issue in terms of remaining capital, but if I can use either of the options you have suggested, I'll go with that.

Yes there are definitely differences in the contracts between employers, but having to wait to age 72 to start the payout annuity seems strange. It might be helpful to check with your old employer's benefits department. I'm currently trying to decide between the 10 year payout annuity and a lifetime annuity. Most people will be better off with the payout annuity if they invest it sensibly, but TIAA quoted me a 9.5% payout rate on a lifetime annuity and I'm only in my early 60s so that's tempting.
7
US - UK Taxes / Re: TIAA-CREF tax issue and contact issue
« Last post by dunroving on Yesterday at 09:21:24 AM »
Quote from: nun on May 15, 2024, 09:19:50 PM
TIAA Traditional is an annuity with various withdrawal options. The 10 year payout annuity is the only way to get at the principal and close out the account. Many people will buy a lifetime annuity because TIAA often offers payout rates a couple of percent higher than the rest of the industry if you are a long term client and have an older contract. If you stick with the interest only payments then your principal will pass to your beneficiaries and they will have to deal with the US/UK tax implications of that. The whole withholding tax issue is an ongoing annoyance for many people taking cross border payments as the default is to withhold 30% for NRAs...and even for US citizens overseas. So keep filing the W-8BENs to claim tax treaty exemption from US tax and declaring this foreign "pension" to HMRC and paying the tax to them, but be prepared to file a 1040-NR to claim back any tax TIAA withholds in error.

FYI If you are a US citizen resident in the UK and without a US address US financial companies will often withhold 30% from all payments even from ROTHs, so in a sense you are better off being an NRA.

Thanks, Nun. I've checked my messages and TIAA said I couldn't use the 10 year payout until age 72, because of the TN-specific contract. It wouldn't be the first time they have incorrectly advised me, though!

I'll get back in touch and ask the question again - also will enquire about an annuity.

My beneficiary is actually a colleague in the US, so UK/US tax issues shouldn't be an issue in terms of remaining capital, but if I can use either of the options you have suggested, I'll go with that.
8
US - UK Taxes / Re: WEP and voluntary WEP contributions
« Last post by durhamlad on Yesterday at 08:37:23 AM »
Quote from: RSpence on Yesterday at 12:03:22 AM


I read on a Facebook group where someone was quoted a wait time of between 5 and 7 years for an MRI.

You got it, Facebook is the new NHS.

I visited my sister yesterday who is undergoing chemotherapy for cancer, and this week her husband had just had his annual MRI on his head. He had a brain tumor removed 25 years ago and undergoes regular monitoring. Both of them sing the praises of the NHS.

This year I have 2 friends here who have had knee and hip replacements 8 weeks after being put on the waiting list, both done in local private hospitals but paid for by the NHS as the NHS trust in our area is trying to catch up. It is very post code dependent on how well the NHS is doing and that should not be the case.
9
US - UK Taxes / Re: WEP and voluntary WEP contributions
« Last post by RSpence on Yesterday at 12:03:22 AM »
Yes I suppose your private health care brings it up to US standards (if you have insurance or Medicare in the US). As well as Medicare I pay for a supplemental policy which covers everything and lets me go to the Mayo clinic.

I read on a Facebook group where someone was quoted a wait time of between 5 and 7 years for an MRI.
10
US - UK Taxes / Re: TIAA-CREF tax issue and contact issue
« Last post by nun on May 15, 2024, 09:19:50 PM »
Quote from: dunroving on May 15, 2024, 08:16:44 AM
Sorry, Nun, missed your response as I was a way on a cycling trip. Re: TIAA Traditional, I believe the restriction is linked to the specific contract with the state I was working in at the time. It's a bit of a nuisance, as (a) I really wanted to divest all of my retirement investments from the US to UK, and (b) I believe even at age 70, I have to phase the withdrawals over 10 years - I can't just pull it all in a lump sum. If I live to age 80, it will be a miracle.

Yes, I receive "interest" payments every month. And Yes, TIAA seem to randomly deduct tax simply because it's supposedly easier for them to annoy me than annoy the IRS.

TIAA Traditional is an annuity with various withdrawal options. The 10 year payout annuity is the only way to get at the principal and close out the account. Many people will buy a lifetime annuity because TIAA often offers payout rates a couple of percent higher than the rest of the industry if you are a long term client and have an older contract. If you stick with the interest only payments then your principal will pass to your beneficiaries and they will have to deal with the US/UK tax implications of that. The whole withholding tax issue is an ongoing annoyance for many people taking cross border payments as the default is to withhold 30% for NRAs...and even for US citizens overseas. So keep filing the W-8BENs to claim tax treaty exemption from US tax and declaring this foreign "pension" to HMRC and paying the tax to them, but be prepared to file a 1040-NR to claim back any tax TIAA withholds in error.

FYI If you are a US citizen resident in the UK and without a US address US financial companies will often withhold 30% from all payments even from ROTHs, so in a sense you are better off being an NRA.
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