Hi,
First time posting here, and can I just say there are people on this board who astound me with their knowledge and generosity in sharing said knowledge.
Here's my story: I lived in the US for 40 years, and returned to the UK in 2012 when I retired. I renounced my US citizenship in 2015, and have complied with all the necessary forms.
I have a 401K in the US, and am really confused about the best way of dealing with it. My gut feeling is to move the money to the UK, and really cut all ties. I am over 59 1/2 so no penalties. Am I correct in thinking that any 401K distributions would only be taxable in the UK? For example, if I withdrew $50k per year for the next five years (or whatever amount would keep me in the 20% tax band), I would fill in an HMRC self assessment each year? I haven't had to pay tax since I came back as I am living on my savings. Would I have to file a tax return for the US?
I would probably have any withdrawals paid into my US bank account and then move it to the UK - does that cause any issues? The firm where my 401k is held has accepted the W-8BEN and I have withdrawn a small amount as a test.
I know I do have the option of just leaving it as I'm not in desperate need for the money, but with no spouse and no children and all family in the UK I do feel that should something happen to me it will be difficult for them to deal with assets in the US.
Thanks in advance for any thoughts or comments, I have in the past paid to talk to a tax "expert" but am afraid they confused me even more than my google searches have.
