QROPS for US Residents

QROPS for US ResidentsQROPS were seen as an impossible dream for US residents with UK-based pensions up until 2010. The reasons for this were mainly based around the reporting requirements to the IRS. Pension trustees used to tend to overlook US residents for QROPS, because of the resources required to fulfil the reporting necessities. The relatively low number of enquiries also meant it was not really deemed a big enough issue to consider.

But as the popularity of QROPS grew globally, providers started to have a rethink. There was one further stumbling block in addition to the reporting issues though. Finding a jurisdiction which worked effectively with the US tax regime was proving a challenge.

Guernsey attempted the introduction of QROPS with a deferred variable annuity wrapped within some of their schemes, but the problem was still there. The income and gains of QROPS were still subject to annual IRS taxation, meaning the value of holding a scheme away from the UK was obsolete.

It wasn’t until QROPS emanating from Malta were designed specifically to work with the Double Taxation Agreement signed in 2010, that US residents finally had the option to benefit from the array of features a QROPS offers.

  • Escape from UK pension regulations
  • Option to have pension held in dollars, thus avoiding currency fluctuations
  • Multiple pension consolidation
  • Tailored investment options
  • Larger tax-free lump sum
  • Fund protection in the event of a divorce of bankruptcy

Many advisers find QROPS for US residents to be slightly unnerving. There is an awful lot of prior experience and knowledge required to offer sound advice on the matter. At QROPS.net, we have helped thousands of US residents with UK pensions gain more control over their savings and access the substantial benefits offered by a scheme based in Malta.

To be placed in touch with a QROPS specialist based in your part of the States, click here

About John Cassidy

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