Who this is for
- UK residents with 401(k)s or IRAs
- Clients planning US retirement from the UK
Pensions & Investments
US 401(k) / IRA — UK tax treatment
How the UK taxes your US retirement accounts during growth, contributions, and distributions — and how the treaty interacts.
Overview
Why this filing matters
How the UK taxes your US retirement accounts during growth, contributions, and distributions — and how the treaty interacts.
Note — US retirement plans & UK reporting.
What you get
- UK/US coordinated tax analysis
- Guidance on treaty elections
- Drawdown planning
Our approach
Built for the cross-border edge cases.
Most US-UK filings fail the same way: a treaty position that wasn’t disclosed, a foreign account that slipped under FBAR thresholds, a PFIC election filed in the wrong year, a carry-forward not tracked from one preparer to the next. The cost of any single one of those is rarely catastrophic on its own — it’s the compounding over multiple filing seasons that quietly turns a clean tax life into a six-figure remediation project.
We start every engagement by looking at the edge cases first — the elections, the disclosures, the carry-forwards, the side-effects on next year’s return — and only then turn to the routine line items. The result is a filing that reads cleanly to anyone who picks it up next: another preparer, the IRS, or a successor in your own business.
- Position memo on every meaningful election, with the reasoning written down for the next return
- Carry-forwards (FTC, capital losses, PFIC basis) tracked year-on-year so nothing expires unused
- Plain-English commentary on every position taken — the kind that makes a future audit a non-event
Our process
How we handle your us 401(k) / ira
Four steps from first call to filed return. Fixed fee confirmed before any work begins.
- 01
Intake
30-minute scoping call. We confirm your situation, required filings, and send a tailored document list.
- 02
Review
We analyse your position, flag any cross-border risks, and confirm the scope and fee before any work starts.
- 03
Prepare
Draft returns and schedules are prepared with plain-English commentary on key positions for your review.
- 04
File
E-file with the IRS / FinCEN, send confirmations, and handle any follow-up notices or questions.
Pricing
Fixed fees — no surprises
US retirement tax analysis (UK side): £400 + VAT for a coordinated US/UK memo. Implementation (rollover planning, drawdown sequencing, treaty elections) is quoted per engagement.
FAQs
Common questions about US 401(k) / IRA
How is my 401(k) taxed in the UK?
Growth is generally tax-deferred under the treaty. Distributions in retirement are taxed by the UK (your country of residence) with treaty relief for any US tax withheld. Timing and order of drawdown matter.
Can I roll my 401(k) to a SIPP?
Usually not tax-efficient — the IRS treats it as a distribution (taxed at ordinary rates plus potential 10% early-withdrawal penalty), and the UK typically won't recognise it as a qualifying transfer either. Rare exceptions exist.
What about Roth IRA distributions?
Generally exempt from UK tax under the treaty once you're over 59½ and the account has been open 5+ years. Pre-59½ Roth conversions need careful US-UK modelling — not always the obvious win.
Do I need to report my IRA on UK self-assessment?
Only when you take distributions. The balance itself doesn't create a UK filing obligation, though large accounts may become relevant in specific disclosure contexts. We coordinate reporting year by year.
Ready to get this filed?
Tell us your situation and we'll confirm scope, a fixed fee, and the documents we need — usually within one business day.