So what are your options?
You could leave your UK pension plan in place and take advantage of the more flexible investment options provided by US IRA or 401k accounts.
We’re able to advise on a number of potentially beneficial retirement plans. Whichever you choose, it’s not advisable to draw funds from an account before you reach the age of 59½ as you’ll attract income tax and a 10% excise ‘penalty’ tax.
IRAs – up to the age of 50, an expat can make a maximum contribution of $6,000 each year, or up to $7,000 after the age of 50
401ks – if you’re working for a US parent company, these could benefit you as there’s an employee limit of $19,000. If you’re over 50, you can add a further $6,000 each year
403b – this could be suitable for people working in certain jobs
Defined benefit plans – different plans with different structures and contribution limits are available depending on your employer and your financial situation.