If you are living in the US or you are in the process of moving and want to transfer your UK pension to a QROPS, then it is paramount that you proceed carefully in choosing the right advisor for your transfer.
Unfortunately the majority of information on the net regarding a QROPS transfer for a US resident or national is wrong, given that it is well out of date. Basically anything written on the subject prior to 2010, cannot be relied on. Any transfer undertaken prior to 2010 needs to be reviewed as it will not be able to be reported to the IRS without causing major tax issues.
USA residents and nationals, the same as anyone else have been able to transfer to a QROPS since 2006. However before 2010 no QROPS Trust existed that could undertake the transfer without creating major problems regarding tax reporting in the USA.
The instigation of FATCA created additional problems regarding the reporting of UK pensions. It also ensured that all QROPS Trusts created before 2010 are not recognised by the IRS and cannot comply with reporting under FATCA.
Please take note a USA resident or national can only transfer to a US compliant QROPS, no matter where in the world they reside.
Understanding these issues, and taking into consideration the new reporting problems that would be created by FATCA. QROPS Trusts working with specialist advisers were able to put together the first IRS friendly QROPS solution in January 2010.
There are now five QROPS Trusts that are able to offer QROPS transfers to USA residents and nationals, each offering a slightly different version.
There are many IFAs advertising QROPS for USA resident. However there are only handful of specialist financial advisory companies, who are qualified and have the necessary experience in this field. It is of the utmost importance to ensure that your transfer is undertaken compliantly. You must ensure that your adviser is G60 or equivalent qualified, and fully understands the complex tax issues involved in a QROPS transfer or a USA resident.
Get this wrong and you will wish that you had left your pension in the UK. Get it right and your QROPS could provide an income double what you would have had from your UK pension.
For more information visit www.qropsusa.biz or contact firstname.lastname@example.org who are an independent organisation, offering advice and information on QROPS pension transfers, specifically for USA residents and nationals.