I see that the Money Purchase Annual Allowance (MPAA) is an HMRC thing whereas if you're taking a retirement pension distribution, you may only contribute £4,000 to a U.K Pension. This could adversely affect those that may have a QROPS and also making contributions to a different pension. The rules look rather complex, BUT, I don't see that a U.S. Retirement Pension would initiate MPAA should the individual contribute over £4,000 to a U.K scheme, (from what I read there must be U.K tax relief given to the plan - so an IRA 401(k) should be exempt). As for QROPS - potentially another story.
Many would take distributions from an IRA/401(k) and continue to contribute above the £4,000 to a U.K scheme as they have continued to work, or had a change in circumstances due to COVID and now need to get their nose to the grindstone once again.
Curious if anyone has been affected by MPAA, or can add more?
