ROTH conversions before moving to the UK

Hi @nun 

Given you've got substantial US investments, is it correct to assume you've been in the US at least 10 years? If so, are you also familiar with the new FIG regime rules? Here's a link: https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig41000

Perhaps these will give you a little more time to manage the conversions?

Hi @nun 

Given you've got substantial US investments, is it correct to assume you've been in the US at least 10 years? If so, are you also familiar with the new FIG regime rules? Here's a link: https://www.gov.uk/hmrc-internal-manuals/residence-and-fig-regime-manual/rfig41000

Perhaps these will give you a little more time to manage the conversions?

Yes thanks for that. I'd discovered this in some Googling and looking at the new rules for "Long Term UK Residency". So it looks like I could do the IRA to ROTH conversions and just be liable to US tax for the first four years on all my US income, including my pensions, and that would allow me to convert smaller amounts and avoid the larger marginal tax brackets.

As part of my "worst case scenario" I looked at the effective tax rates if I was exposed to both US and UK tax regimes and just the US regime when doing a $500k conversion. Paying just US tax I'd pay 28% in taxes and paying UK tax it would be 40% with my personal allowance disappearing and the highest marginal tax rate of 45%.