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Topic: Taxes and Retirement fund  (Read 930 times)

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Taxes and Retirement fund
« on: February 24, 2010, 01:11:38 PM »
Okay, I have read some things in this thread about taxes, but I'm having trouble finding the answers that I need. I just moved to the UK on September 29, 2009 and I just filed my taxes Which is fine, but I don't know if there is anything that I need to do for next year? I won't be working in the U.S. anymore or earning any money and therefore I won't have any W-2's. Will I need t let the IRS know that I have moved or anything?? I wasn't really worried a ton about this until now because of everything else going on.

Also, I was contributing to a retirement plan in the U.S. while I was working. It doesn't have a TON of money in it, but a few thousand that I wouldn't like to lose. I don't think ir is possible to move it to an IRA here in the UK so does anyone know what I should do? I was thinking of contacting the company where my fund is with and see what they say so I may have to do that.

Hope all of that makes sense and someone can give me a little advice :) Thanks in advance!
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Re: Taxes and Retirement fund
« Reply #1 on: February 24, 2010, 01:24:48 PM »
YOu need to continue to file tax returns, as your US return reports worldwide income not just US income.

You don't have to let the IRS know you have moved but you can fill out a change of address form, if you want to do so.

YOu can rollover your 401k plan ( I am assuming this is what it is) to an IRA but that will still be held in the US.  YOur 401k plan may also allow you to just hold the money there.  Some of the plans don't require you to move the money just because you no longer work with that company.  YOu cannot move over to the UK unless you take a distribution -- which would be taxable.  IRA is probably your best option and it is pretty straightforward.


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Re: Taxes and Retirement fund
« Reply #2 on: February 24, 2010, 10:33:24 PM »
Depending on your 2010 tax rate you may want to recharacterise the IRA to a Roth IRA this year.


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