QROPS in the USA
What is a QROPS scheme? A QROPS, or Qualifying Recognised Overseas Pension Scheme, is an overseas pension scheme that HM Revenue & Customs (HMRC) recognises as eligible to receive transfers from registered pension schemes in the UK.
QROPS in the USA in 2020
The benefits of QROPS
- No Lifetime Allowance
- Your pension will pass to your family
- Less tax on your pension benefits
- Pension paid in currency of your choice
- Protection from creditors in the event of a divorce
The types of pensions you can transfer to a QROPS
If you have a company or personal pension (including defined benefit plans), you can transfer these into a QROPS. You can also transfer your existing QROPS (Qualifying Recognised Overseas Pension Schemes).
Pensions that you can not transfer to a QROPS include
• State pensions
• NHS pensions
• Teachers pensions
• Armed Forces pensions
• Police and Firefighters pensions
QROPS in the USA – Frequently Asked Questions
What types of pension can I transfer to a QROPS?
Most types of pension schemes can be transferred where there is a transfer value (e.g NOT UK State Pensions) available, with the exception of unfunded public sector schemes.
Will I have to pay UK taxes?
Any pension scheme in the UK will deduct tax at source on pension income paid unless there is a double taxation agreement in place with the member’s country of residence and HMRC agrees to pay gross and issues a tax code accordingly.
Can I take my pension in US dollars?
Certain types of pension schemes such as SIPPS can pay benefits in multi-currencies.
Is there a minimum amount I can transfer to a QROPS?
How long does it take to transfer a pension?
It depends on the type of transfer and the parties involved but a rule of thumb is 4-12 weeks.
Is flexible drawdown available?
Defined contribution pension schemes can offer flexible drawdown. But, it depends on providers rules, you may need a transfer to get this benefit.
Are QROPS suitable in the USA?
USA residents can use QROPS. But, they will be subject to the 25% transfer tax introduced by the UK government. This is where the transfer is outside the EEA and not within the country where you live.
If you now live in the USA you should consider your UK company or personal pension transfer options. Get your free, no obligation, guide to Pension reviews today.
Get UK pension advice
Discover the UK pension options that are available.
Get your free initial consultation with an US regulated pension adviser.
Complete the form below and one of the UK pension team will contact you shortly