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Topic: 100% retirement contribution?  (Read 1332 times)

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100% retirement contribution?
« on: November 18, 2008, 01:03:12 AM »
As a US citizen living and working in the UK, is there any way to not pay US taxes on my income if I zero UK taxes by putting 100% of my income into a tax free retirement fund?

Is there any way this would work or would I end up paying taxes on my UK salary anyway in the US?


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Re: 100% retirement contribution?
« Reply #1 on: November 18, 2008, 09:46:05 PM »
I don't know the details of your "plan", but any pension contributions have to be reported on your 1040 as income and they are not eligible for the foreign earned income exclusion. You can defer taxes on them by invoking the tax treaty or if you use the foreign tax credit you can use excess credits to cover the tax you'd have to pay on them.



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Re: 100% retirement contribution?
« Reply #2 on: November 19, 2008, 10:00:12 AM »
You have not said if you are using the treaty or not on your US returns.

You may still have excess foreign tax credits from the past 10 years you could use up.
« Last Edit: November 19, 2008, 01:11:05 PM by guya »


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Re: 100% retirement contribution?
« Reply #3 on: November 20, 2008, 01:32:44 AM »
Sorry for the ignorance in advance, but what does 'using the treaty' mean?

I've been earning the US most of last 10 years so don't think I have foreign tax credits.

I know I can 0 my income (say 100k pounds) and pay no taxes in the UK by putting all of my income into a quops.

My question is whether there's any way to get US tax authorities to recognize this and not tax me on the 100k in earnings I put into the quops?


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Re: 100% retirement contribution?
« Reply #4 on: November 20, 2008, 04:36:49 AM »
Sorry for the ignorance in advance, but what does 'using the treaty' mean?

I've been earning the US most of last 10 years so don't think I have foreign tax credits.

I know I can 0 my income (say 100k pounds) and pay no taxes in the UK by putting all of my income into a quops.

My question is whether there's any way to get US tax authorities to recognize this and not tax me on the 100k in earnings I put into the quops?

"Using the treaty" means applying the relevant parts of the UK/US tax treaty.

To work out your tax situation you need to consider your citizenship, and past and current residency. How long have you been in the UK and what was /is your status

I don't think the IRS recognises QROPS. Maybe Guya can comment


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