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URL:  http://boards.fool.com/look-at-whether-it-would-make-sense-to-roll-the-20104539.aspx

Subject:  Re: Retiring to Scotland Date:  1/6/2004  12:35 PM
Author:  WeeBeastie Number:  1728 of 5068

Look at whether it would make sense to roll the deferred comp plan over into a conventional IRA. (If you were staying in the US long-term, I would say that it almost certainly would make sense! - but that isn't your plan.)

It's a nonqualified plan and therefore not eligible for rollover. Not only that, I can't elect to leave it with the company when I leave. Otherwise, I would definitely roll it over. I'm leaving most of my retirement assets here in the US when I go back. I find there's a lack of transparency in most retirement savings vehicles in the UK, and not only that govt regulations force purchase of an annuity from retirement plans. No thanks!

Or... unless the tax laws in Scotland would ding you with a tax on your overseas capital gain. In which case you'd probably do well to not live in Scotland until that capital gain is in a prior year.

There is no cap gains tax whatsoever on the sale of one's principal residence in the UK. YAY!

Also, I get a bit of a break if I leave the US between December and April, as the UK's tax period runs from April 6 to April 5. Therefore from January to March of the year I leave, I am not resident in either country for tax purposes. I don't know that this actually gives me any benefits that I can actually use, I'd need to look into the US non-resident tax laws a bit more closely.

Thanks for the thoughts though - I'm always up for suggestions to incorporate into my plan. I'm still at the stage where I think I've missed something and it's not going to work.


CautiousBeastie.

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