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Topic: UK Pension 25 Percent Tax Free Distribution  (Read 1067 times)

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UK Pension 25 Percent Tax Free Distribution
« on: March 17, 2021, 02:44:03 PM »
Newbie here so I apologize if this has been covered somewhere but I could not find an answer on the forum through my own searching.

I am a US citizen currently residing in the USA.  I lived in England for about 15 years and have a defined contribution pension that I was contributing to while living and working in England.  I am wanting to crystallize my pension and take the 25 percent UK tax free distribution.  After having done some research, it seems tax professionals have different opinions on whether or not it is also tax free in the USA.  Does anyone on this forum have any experience of actually taking the 25 percent tax free distribution and, if so, what did you do regarding the tax implications in the USA?

Also, does anyone have any recommendations of a tax professional that I could hire to file my taxes for this year (2021)?  I just want to make sure I am compliant with the IRS in taking my pension.   

A staunch supporter of the opinion it is tax free in the USA seems to be a company called Castro and Co.  See the following link for their position.
newcomer link: https://www.castroandco.com/blog/2018/february/u-s-tax-treatment-of-uk-pension-distributions/ [nonactive]


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Re: UK Pension 25 Percent Tax Free Distribution
« Reply #1 on: March 17, 2021, 07:54:38 PM »
The OP in the linked thread is resident in the UK, but see the 3rd bullet point in reply #1 which covers a USC resident in the US.

https://talk.uk-yankee.com/index.php?topic=98575.msg1303483#msg1303483

After having done some research, it seems tax professionals have different opinions on whether or not it is also tax free in the USA. 

It's a disputed issue, but lately we see more opinions similar to that linked above.


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