Should/ can I opt out of NI?

I honestly don't full understand it but have been reading online that I can opt out of NI contributions if I don't plan on retiring in the UK.  Started working here about 6 months ago.  My husband and I plan on moving back late 2012 to the US.  Does anyone know if this is something I should do to save money now or in the future?

Thanks

I think this should have gone under taxes..oops

I don't think you can opt out unless you are a foreign national temporarily working in the UK.  Where did you read that you could opt out?

I honestly don't full understand it but have been reading online that I can opt out of NI contributions if I don't plan on retiring in the UK.  Started working here about 6 months ago.  My husband and I plan on moving back late 2012 to the US.  Does anyone know if this is something I should do to save money now or in the future?

Are you an employee of a US company or affiliate in the UK (seems you'll be under 5 years in UK)?

http://www.ssa.gov/international/Agreement_Pamphlets/uk.html#coverage

Under - Coverage and Social Security taxes.

http://www.pensions.co.uk/pension_planning/contracting-out.html is one website. I had a post on a facebook group saying to sign up for a NI rebate so that you can rebate your NI contributions into a personal stakeholder pension.

Okay, you're talking about opting out of pension contributions, not NI altogether.  NI contributions cover more than just the state pension plan, and you cannot opt out of them altogether.

Yes, you can opt out of the pension plan, but just because you are moving back to the US eventually doesn't mean you won't get paid the pension benefits.  You don't have to retire in the UK to receive your benefits when you achieve retirement age.

Contracting out only applies to the state second pension, also called SERPS. It's very confusing and the benefits are very individual based on your age, salary, etc. As far as I know most forms of contracting out are also being abolished in April 2012. I'd recommend reading up on it on the direct.gov's website and also the excellent guide to UK pensions on The Motley Fool. Both links below. Bear in mind that a paper on UK pensions was just published yesterday about potential changes and there's an open review until 24th June where the government will be taking suggestions for changes they're hoping to implement soon. So those potential changes will also effect SERPS a lot.  Anyway, links...

Motley Fool guide to UK pensions (this is page 2 where they talk about contracting out)
http://www.fool.co.uk/Pensions/guides/The-State-Second-Pension.aspx

Direct.gov website about SERPS and contracting out
http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/AdditionalStatePension/DG_4017827

Motley fool guide to the pension paper published yesterday
http://www.fool.co.uk/news/investing/2011/04/05/coming-soon-a-flat-rate-state-pension.aspx

Full text of the paper published
http://www.dwp.gov.uk/docs/state-pension-21st-century.pdf

To know if it's right for you I'd really recommend talking to a pension expert. My employer has one that comes round once a year to chat to any employees who have questions or concerns, and you can always contact direct.gov or a private pension expert.

Contracting out has failed and is to be abolished going forward.

A UK personal pension plan is arguably a foreign grantor trust requiring annual filing/reporting on Forms 3520, 3520-A, 8621, 8938 and TD F90-22.1. These are - annoyingly - some of the most complex areas of US tax law with significant penalties.