Jon Abell
Joined: 10/18/2024
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RE: US pension and UK Tax
Hi Admin 32, Thanks for the reply, but doesn't this conflict with the Admin replies to GeoffD69 and to James (regarding the recognition of 401(k) as pensions and Gosling (regarding the 25% tax free)? Leaves me confused. Thanks. -
RE: US pension and UK Tax
As follow up, will the withdrawal of funds from the 401(k), and the claiming of 25% tax free allowance, trigger the MPAA? Thanks, Jon -
RE: US pension and UK Tax
Hi, UK citizen and resident with US 401(K) from past employment. 1) Can you confirm that a lump sum payment benefits from 25% tax free. Presumably, though, this counts towards the £268,275 maximum, or is that maximum possibly "enhanced"? 2) (Not sure you can answer this) Is it correct that the US payer will withhold taxes anyway on behalf of the IRS (as they are entitled to do by the treaty), and therefore the W-8BEN form is not useful in the pension context? Thanks, Jon