US retirement account help needed

Does anyone have a recommendation for someone who can help with my husband's US retirement account? My husband is a UK citizen who lived and worked in the US for 16 years. During that time, he paid money into his retirement account--pretty straightforward so far.

In 2015, we decided to move back over to the UK and were told by our US advisor that he could leave his retirement account in the US without a problem. Fast forward to 2021. That financial advisor died and the person who took over for him is pretty clueless, although it may be that our deceased advisor gave us dodgy advice and he should have transferred the account over to the UK at some point (since we have no plans to go back and live in the US). We're just trying to figure out our legal options. Would he be able to transfer it over to my US retirement accounts since I am a US citizen? Or if he does have to liquidate it and move it here, can he put it in his UK retirement accounts to minimize our tax hits?

I am nearly 59 1/2, but he is younger (55 1/2), so we're not quite at retirement age yet.

Any advice or recommendations would be GREATLY appreciated.

There is no way you can transfer your husband’s retirement account to your name while he is alive. I also don’t believe there is a way to transfer it to a UK retirement scheme. Cashing it out then transferring it to the UK may be the only option.

What type of retirement account does he have? 401k, IRA, defined benefit (aka final Salary)

Myself, my wife and my son all had employer retirement accounts that we moved to an IRA that we can manage from the UK, but we did the move to an IRA before we left the USA. In my son’s case he initiated the move before he left and it completed after he had moved to England.  I think the issue is going to be initiating the transfer from the UK if he does not already have a relationship with a US broker.

There is no way you can transfer your husband’s retirement account to your name while he is alive. I also don’t believe there is a way to transfer it to a UK retirement scheme. Cashing it out then transferring it to the UK may be the only option.

What type of retirement account does he have? 401k, IRA, defined benefit (aka final Salary)

Myself, my wife and my son all had employer retirement accounts that we moved to an IRA that we can manage from the UK, but we did the move to an IRA before we left the USA. In my son’s case he initiated the move before he left and it completed after he had moved to England.  I think the issue is going to be initiating the transfer from the UK if he does not already have a relationship with a US broker.

I was SO hoping you'd respond. I saw some of your other posts in here and had an idea you'd be a good "go to" person. He was working for a university while in the US, so it WAS the equivalent of a 401k. Our (now deceased) broker switched him to over to IRAs after we moved to the UK.

I was SO hoping you'd respond. I saw some of your other posts in here and had an idea you'd be a good "go to" person. I need to check with my husband about the type of accounts they are. He was working for a university while in the US, so it WAS the equivalent of a 401k. Our (now deceased) broker may have switched him to over to IRAs in the interim, but I'm not 100% sure.

That is very promising.  Find the broker, find out what type of account it is and whether it can be managed from the UK, many brokers are okay with this.  Once he gets to age 59.5 he will be able to start withdrawals penalty free. (There is usually a 10% penalty for early withdrawals from retirement accounts).  Our son is in his late 30's so will let his retirement account (Roth IRA) grow for the next 20+ years, it is invested in a "target" retirement fund that gradually over time becomes more invested in bonds and less in stocks which means he doesn't have to mess with it at all.

That is very promising.  Find the broker, find out what type of account it is and whether it can be managed from the UK, many brokers are okay with this.  Once he gets to age 59.5 he will be able to start withdrawals penalty free. (There is usually a 10% penalty for early withdrawals from retirement accounts).  Our son is in his late 30's so will let his retirement account (Roth IRA) grow for the next 20+ years, it is invested in a "target" retirement fund that gradually over time becomes more invested in bonds and less in stocks which means he doesn't have to mess with it at all.

The broker who inherited our deceased broker's accounts has said he (and his firm) can't handle the admin for it. It's a small firm, and he is relatively clueless...nor is there much in it for him to make it worth his while (to be perfectly cynical, but honest). One of the accounts is with a larger organization that has been able to handle it, but from what I can tell, they won't allow him to roll the rogue account (for lack of a better term) over or even open a new one. My husband has allowed his green card to become inactive (although I don't think it has expired/lapsed) and has no US residency, which may add another wrinkle.

The broker who inherited our deceased broker's accounts has said he (and his firm) can't handle the admin for it. It's a small firm, and he is relatively clueless...nor is there much in it for him to make it worth his while (to be perfectly cynical, but honest). One of the accounts is with a larger organization that has been able to handle it, but from what I can tell, they won't allow him to roll the rogue account (for lack of a better term) over or even open a new one. My husband has allowed his green card to become inactive (although I don't think it has expired/lapsed) and has no US residency, which may add another wrinkle.

Not having a green card should not be an issue, not being a resident or having a US bank may well be. For a relatively small sum of money it may not be worth the hassle and may be worth just cashing it out since rolling it over may be very difficult if he doesn't already have a US brokerage to receive it.

Not having a green card should not be an issue, not being a resident or having a US bank may well be. For a relatively small sum of money it may not be worth the hassle and may be worth just cashing it out since rolling it over may be very difficult if he doesn't already have a US brokerage to receive it.

We do still have a US bank account (a regular checking account) which is in both of our names. I wonder if they could do anything with it? The amount is NOT that small. I wish it were. He worked there for 16 years and made decent money/had a decent employer contribution the whole time.

We do still have a US bank account (a regular checking account) which is in both of our names. I wonder if they could do anything with it? The amount is NOT that small. I wish it were. He worked there for 16 years and made decent money/had a decent employer contribution the whole time.

Having a US bank account may make a huge difference. Our US bank, HSBC, offers IRA accounts so maybe that is an option, rolling his retirement account to an IRA at a bank where he is already a customer.

Having a US bank account may make a huge difference. Our US bank, HSBC, offers IRA accounts so maybe that is an option, rolling his retirement account to an IRA at a bank where he is already a customer.

Yes--the checking account is with TD Bank and it is in both of our names. I know they are associated with Ameritrade.

I was SO hoping you'd respond.

So was I. 

As a non U.S. resident you may not be able to roll over to a new custodian. There is no legal basis that the IRA must be closed, resulting in a full distribution and tax hit just because you live overseas. A custodian will often disallow new investments however, fund changes etc. Unlike a 401(k) and the Rule of 55, you will need to wait until 59 1/2 to remove the 10% penalty.

As a non U.S. resident you may not be able to roll over to a new custodian. There is no legal basis that the IRA must be closed, resulting in a full distribution and tax hit just because you live overseas. A custodian will often disallow new investments however, fund changes etc. Unlike a 401(k) and the Rule of 55, you will need to wait until 59 1/2 to remove the 10% penalty.

So in other words, he can't be REQUIRED to close the account even though he is not a US citizen and has no residence in the US? We understand that they won't actually DO anything with the account but sit on it, but the person he spoke to made it sound as though the company is not authorized to have it (even though nothing would have happened if we didn't contact them--they never contacted us).

We just want to make sure he will be entitled to take distributions from it without a hassle once he reaches the age of 59 1/2.

Some 25 years ago I cashed out my US employer retirement account (401k) when I left the US and paid the 10% penalty for early withdrawal. What I then did was brought the funds into the UK and reinvested it in an employer AVC (Equitable Life, but that's another story!) - receiving 40% UK tax relief on pension contributions at the same time - so all in all a win win.

Although not mentioned in your OP, as your husband worked 16 years in the US, presumably he paid Social Security during that time? - if so, he should be entitled to a Social Security pension from age 62 onwards - albeit with the drawback of the WEP - make sure that the Security Administration has your UK address and ask them to send him a statement estimating his entitlement.

Good luck.

Some 25 years ago I cashed out my US employer retirement account (401k) when I left the US and paid the 10% penalty for early withdrawal. What I then did was brought the funds into the UK and reinvested it in an employer AVC (Equitable Life, but that's another story!) - receiving 40% UK tax relief on pension contributions at the same time - so all in all a win win.

Although not mentioned in your OP, as your husband worked 16 years in the US, presumably he paid Social Security during that time? - if so, he should be entitled to a Social Security pension from age 62 onwards - albeit with the drawback of the WEP - make sure that the Security Administration has your UK address and ask them to send him a statement estimating his entitlement.

Good luck.

Thanks--this is all helpful. Everyone has been great!

Yes, he paid SS during that time and we expect/hope he can tap into that when he reaches retirement age. I know they have MY UK address, but I can't remember/don't know if he took care of this for himself. He tends to be pretty terrible at his personal finance stuff and always left tax things in the US to me or our financial advisor (who, as I said, died a few years ago in a somewhat tragic/unexpected way--he was very young). While I have been about to take care of filing our taxes over here (although, it would just be so much easier if we could e-file rather than have to send things by post) after the first year (2015), this is WAY out of my comfort zone.

After years of paper filing I'm finally venturing into e-filing this year for the first time - using TAXACT software - recommended i think by @Barcrest (?) - experience so far is good and worth the cost.

Re Social Security :
Social Security Administration
Office of International Operations
PO Box 17769
Baltimore
MD 21235-7769
USA