expat retirement options

Hi All,

I am an American working and living in the U.K. on a intra company transfer work permit.  I also have my wife and child, both American here with me.  My wife is a housewife so has no income.

My question is, my employer offers a pension plan, but has also offered to pay me the amount which would go into the pension fund so that I can put this into any retirement system I want, including in the U.S. if I so choose.  I do not plan on retiring in the U.K. so I am not sure having a U.K. pension is the best.

does anyone have any ideas on what I could put this money into so that it stays tax sheltered for retirement.  I would prefer this was in either a offshore account or in the u.s. in dollars.

I have researched IRA(s) and ROTH and these do not seem possible as you can only contribute $4,000 a year and if the foreign earned income exclusion is used there is no U.S. tax burden which also is a tick against you in even opening an IRA or ROTH.

Any other suggestions?

Thank you

Since you are on an intra company transfer work permit can you not participate (pre-tax) in your employers US plan?  This should be deductible in the UK, although you'll need advice on the UK tax implications.

You will still get the benefits from the UK plan even if you do not retire in the UK. 

I would caution against just taking the amount the employer wants to give you in favor of actually participating in the plan.

There are a lot of benefits to participating in the plan rather than doing it on your own.

As guya said, perhaps you can participate in the US plan?

Thanks for the feedback.  I cannot participate in the U.S. corps retirment plan because I am no longer a 'U.S.' employee but an employee of the U.K. corporation.  The company itself was going to allow me to do this but the 401(k) plan administrator (Fidelity) would not because, again I wasn't technically an employee anymore.

I may stick with the U.K. plan if that is the best option - I just want to make sure I explore all of the options.

Thank you

Yeah I figured they wouldn't let you in the US plan but I think the UK plan is better than just taking the money and investing it yourself.... Good luck with your decision!