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.

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