US Wothholding on retirement accounts, 401k, 457, 403b, IRA. pensions etc.

Like may people that work in the US I have accumulated a dizzying number of retirements
accounts from various employers. Generally speaking it's a good idea to roll these over into an IRA for flexibility and to make it easier to keep track of things, but sometimes this should be avoided if funds with different tax treatments would be co-mingled.

Anyway when you come to take money out you have to let your provider know how much tax you want to be withheld in lieu of the year end tax reckoning with the IRS. Remember that as a US citizen living abroad you cannot choose no withholding unless you have a residence address in the US.

Pensions and annuities with periodic payments

You file W-4P and the withholding is calculated based on you allowances just like wage income.

403b, 401k, 401a, 457
Non-periodic payments from these funds are all eligible for rollover to an IRA so there is 20% mandatory withholding on them all. You should not file a W-4P, or W-4 in the case of a 457, unless you want more tax withheld.

IRA
There is 10% mandatory withholding

ROTH
No withholding

All these different withholding amounts will change your UK foreign tax credit and tax due to HMRC.

Like may people that work in the US I have accumulated a dizzying number of retirements
accounts from various employers. Generally speaking it's a good idea to roll these over into an IRA for flexibility and to make it easier to keep track of things, but sometimes this should be avoided if funds with different tax treatments would be co-mingled.

Anyway when you come to take money out you have to let your provider know how much tax you want to be withheld in lieu of the year end tax reckoning with the IRS. Remember that as a US citizen living abroad you cannot choose no withholding unless you have a residence address in the US.

Pensions and annuities with periodic payments

You file W-4P and the withholding is calculated based on you allowances just like wage income.

403b, 401k, 401a, 457
Non-periodic payments from these funds are all eligible for rollover to an IRA so there is 20% mandatory withholding on them all. You should not file a W-4P, or W-4 in the case of a 457, unless you want more tax withheld.

IRA
There is 10% mandatory withholding

ROTH
No withholding

All these different withholding amounts will change your UK foreign tax credit and tax due to HMRC.

I didn't know about the different rates (we have examples of all of the above except for 401(k)  and we have a 414(h) also (I think.)  I thought there was a mandatory 30% if you are abroad?  That was what TIAA-CREF told me...

The 30% withholding is only if you are a NRA and can't claim a reduce rate because of a tax treaty. For example, if you are a UK citizen living in the UK you would use W8-BEN to claim treaty exemption from tax and withholding on your 401k, 403b etc.

FYI your 414h plan is included in my post under the 401a plan. Mandatory Government 401a plans usually have a "pick up" rider under 414h so that, for the IRS’ purposes, the employee contribution is “picked-up” by the participant’s employer; essentially making it an “Employer” plan contribution.