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  • RE: UK tax implications for 401k pension withdrawal in the US

    I think I understand. However, I do have a question regarding the lump-sum issue. What is considered a lump sum payment? I have a ROTH I would like to take an early withdrawal on. I am 42 not 59 1/2 (where one would be able to take tax-free withdrawals in both the US and UK). If I withdraw my Roth IRA in full, is this considered a tax-free lump-sum payment?
  • RE: UK tax implications for 401k pension withdrawal in the US

    Hello, this is a very helpful thread. Am I correct in understanding that an early withdrawal of a US pension plan that is not a liquidation of the pension is not a lump sum payment? Because this is not considered a lump-sum payment, it would be subject to US and UK taxation? For example, one takes an early withdrawal of $25K of a $100K US pension plan leaving $75K remaining in the US pension plan with the intent to receive future payments at retirement age. The $25K would be subject to both US and UK tax? I appreciate your help.