Skip to main content

This is a new service – your feedback will help us to improve it.

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

    Hello, I am a NRA in US and resident/citizen of UK who owns a US IRA. There are two issues I can't resolve: 1/ If I take an entire lump sum distribution of the IRA then it is only taxable in the US, but at what rate? Can I use US tax tables on my US return as is preferable or is it a 30 pct flat tax. 2/ If instead I took a 25pct distribution it could be done with 0 withholding according to the tax treaty because in US this is not considered a lump sum, but would this distribution also qualify as tax free as a 25pct lump sum distribution when taxed in UK? Thank you and please forgive if I posted incorrectly.