Wachovia telling me they don't want my money (retirement account)!?!

No other US bank will roll that money over for me because I can't go into a branch and sign papers since I'm currently in the UK. 

When I rolled mine over I didn't have to go into a branch for anything. I was living on the other side of the country. Although, I did have an existing account with the credit union.

Why not just pay a financial adviser to handle this for you? My brother-in-law works for Wachovia as a F.A. and when I leave my job I will roll it over into an IRA and have him manage it. He's about as nice and honest person you'd ever meet. If you want his email or phone, PM me.

He'd probably just give you advice for free since he wouldn't be able to handle your account. I think Wachovia would make someone at a branch near you handle your account.

-Brian

He'd probably just give you advice for free since he wouldn't be able to handle your account. I think Wachovia would make someone at a branch near you handle your account.

I was under the impression that because I am now a resident overseas that a financial advisor of a US bank is not allowed to advise me in any way.  I certainly wouldn't mind hearing what your brother-in-law has to say about it though if he is allowed to say anything.

Update:  I've gotten in touch with an investment company based in Philadelphia; Janney-Montgomery-Scott.  In the past I did not know the difference between an investment company and a regular bank.  I assumed investment companies were for very rich people. 

Anyway, there doesn't seem to be *any* problem so far!  They are mailing me out the papers, I fill them out, include a photocopy of my passport, mail the papers back, and then my Wachovia IRA rolls over into an IRA with J-M-S.  Couldn't be easier, really. 

I'm so glad it worked out for you!

I'm so glad it worked out for you!

Thanks!  So far so good, I'll really rest easy when the $$ is safe in its new home. 

Andee - well done.  Don't forget that you'll still need to declare this on your UK tax return next year and you may end up owing UK tax.

Why would she end up possibly owing UK tax?

There should be zero US tax on a rollover from a US Qualified Plan to another Qualified US plan.

From a UK perspective this is free of UK income tax under the double tax treaty if she claims the treaty relief from UK income tax on her UK tax return.

However she still may face UK tax at up to 55% because under UK pension rules after "A Day" (6 April 2006) such a transfer is a "benefit crystalization" event which can give rise to UK tax at up to 55% (she won't be transferring to a UK registered plan which is why the UK may say this is an unauthorised payment).  This is an "unauthorised payment charge" not an income tax so the treaty will not help because it does not address unauthorised payment charges.  She would declare this on her UK tax return for the 2008/09 tax year.

There should be zero US tax on a rollover from a US Qualified Plan to another Qualified US plan.

From a UK perspective this is free of UK income tax under the double tax treaty if she claims the treaty relief from UK income tax on her UK tax return.

However she still may face UK tax at up to 55% because under UK pension rules after "A Day" (6 April 2006) such a transfer is a "benefit crystalization" event which can give rise to UK tax at up to 55% (she won't be transferring to a UK registered plan which is why the UK may say this is an unauthorised payment).  This is an "unauthorised payment charge" not an income tax so the treaty will not help because it does not address unauthorised payment charges.  She would declare this on her UK tax return for the 2008/09 tax year.

I don't really understand this at all.  It's money I won't be touching.

Whether or not you take money out of an investment has no bearing on the way that the UK charges tax on that payment unless this is a transfer between UK registered pensions.

I would suggest that if you are unclear you should ask HMRC if they believe that a charge  arises under Schedule 34, Finance Act 2004 (most likely an unauthorised member payment charge) on this transfer.

You will in any case need to reach a view on the UK tax treatment before filing your UK tax return for the year ending 5 April 2009, or you are in danger of evading UK tax which could carry significant penalties.

HMRC's notes to the self-assessment tax return are somewhat inadequate on this issue, but you may want to start by reading them here:

http://www.hmrc.gov.uk/worksheets/2007/sa125-notes.pdf

Andee, I feel your pain, retirement accounts can be difficult. I asked both Fidelity and Vanguard about servicing retirement accounts while I'm in the UK and they were ok with it. They wouldn't open new accounts for for me without a US address.

I'd be interested to learn how the UK treats rollovers from one US retirement account to another as I've been thinking of rolling an old 401k into my IRA

Andee, I feel your pain, retirement accounts can be difficult. I asked both Fidelity and Vanguard about servicing retirement accounts while I'm in the UK and they were ok with it.

Well that's odd to say the least because they are obviously *not* OK with it where I am concerned which is why I am in this predicament in the first place.     (Sorry--I am not getting grouchy with you masterblaster--just Wachovia--yet again.)

I'd be interested to learn how the UK treats rollovers from one US retirement account to another as I've been thinking of rolling an old 401k into my IRA

My research tell me that you cannot roll over a US retirement account into a UK account.  They are two totally different and incompatable systems.

I am in the process of rolling over my Wachovia account into JMS (Janney Montgomery Scott) which apparantly is not a big deal and the woman I spoke with at JMS was horrified when I told her my story and was eager to help me and get the process done as quickly as possible.

On a pleasant and funny note, when I spoke with my former financial advisor at Wachovia for the first time to let him know the roll over was going to happen he sounded almost exactly like Michael Scott from the American The Office complete with corny jokes and everything. 

Vanguard and Fidelity told me that they couldn't  open up a new account to roll over into using a UK address, but if you are an existing customer they are ok with all transactions and will send stuff like statements to the UK. There are some web transactions that you can't do as they need you to enter a US address.

I'm interested in how HMRC treats a qualified US retirement account rollover as I'd like to roll some IRA money into my ROTH. Maybe the tax treaty covers it. I'll have to pay the tax on the income in the US, but with all the recent changes for non residents I'm not sure if I'll have to pay UK tax.

I'm interested in how HMRC treats a qualified US retirement account rollover. Maybe the tax treaty covers it

Me too, as I have two IRAs and want to roll one into the other. Seeing a UK/US tax specialist is on my list of things to do before the end of the year. I need to add this to my list of questions.