Questions tagged [pension]

For questions related to pension, which are usually contracts to pay an individual a fixed sum after retirement from an organization or service.

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Does dividend tax witholding mean that ETFs aren't necessarily great for personal pensions overseas?

Question For tax-shielded personal pensions (US IRAs, UK SIPPs), should one prefer to "manually replicate" ETFs by holding stocks directly instead of buying ETFs, to avoid US withholding tax ...
SuperElectric's user avatar
1 vote
2 answers
67 views

Exceeding UK annual pension allowance

Due to changing circumstances, I think I might exceed my UK pension allowance for the tax year 23/24. As I understand it, there is a tax charge for this at the marginal rate of Income tax. Is this tax ...
Rob's user avatar
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1 answer
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After 4 yrs, new money shows up in closed 401K account

I separated from a company on 12/30/2015. Feb 2016 I paid $60 distribution fee to rollover the entire 401K balance to an IRA. Fast forward 4 yrs, in March of 2020 I get an email "your statement ...
Bob Duncanson's user avatar
1 vote
1 answer
97 views

Can I cash out my 403b any time after I leave the country?

I'm British and will be moving back to the UK soon. My current employer pays into my 403b. When I leave I'll probably take it with me, although I accept this will come with penalties and taxes. I was ...
GeoMonkey's user avatar
  • 113
2 votes
1 answer
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UK Pension Annual Allowance and Carry Forward

If i have a pension and for the last 3 years didn't make any contributions. Then, this current tax year i make the full £60k contribution as per the annual allowance. Next year, what would my maximum ...
Adam Stewart's user avatar
4 votes
1 answer
150 views

How does moving overseas affect UK state pension and can you continue paying into it from abroad?

I am currently employed in the UK and am paying into the state pension. I am looking at moving to New Zealand on the young people's working holiday visa for up to 3 years, which is being extended to ...
fortunia88's user avatar
6 votes
1 answer
167 views

Can you use a tax-free lump sum to buy a second annuity?

My mother and I were talking yesterday about how she should take her pension (she's retired a couple of years before legal retirement age, which she's now coming up to). We've more or less decided ...
Keiji's user avatar
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1 answer
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In the UK, is it more productive to pay wages into a pension than put money into investments?

I am lucky enough to have a sum of money - about £40k - which I have no particular need or pressure to spend. I had been considering investing it in an index fund but one thing that concerns me is ...
Bob Tway's user avatar
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1 vote
1 answer
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How do I calculate my deductions (income, national insurance, pension & student loan) for an income of 1 week?

I left Company 1 on the 22nd of September, 2022 My salary at Company 1 was £41,000. My P45 states that my: Total pay to date (at the time) was: £19,741.76 Total tax to date (at the time) was: £2,690....
nopassport1's user avatar
3 votes
1 answer
136 views

How do I calculate my pension contribution for automatic enrolment at 5%?

For context: My annual gross salary is £55,000, which makes it around £4583.33 gross per month (£55,000 / 12 = £4583.33). I have been auto-enrolled onto my workplace's pension scheme and my ...
nopassport1's user avatar
2 votes
1 answer
104 views

Can I manage somebody else pension pot?

I have an uncle that is meant to receive a modest amount of money from overseas. The person in question is 60 and does not have a stable job. I want to set up a pension pot for him so that once he ...
Blue Moon's user avatar
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Pension Rollover Problem

A friend of mine had a deadline of 2/17 to make a decision about the distribution of her pension that needed to be rolled over. She missed the deadline. Fidelity automatically chose one for her and ...
Bob Baerker's user avatar
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5 votes
2 answers
656 views

Can I move monthly pension distributions into a traditional IRA?

As a former public school teacher, my wife gets a monthly check from the state Division of Pensions and Benefits. Is it possible to move that money each month into her Traditional IRA and consider it ...
Daniel Goldfarb's user avatar
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IRS Form W4-P : Should I remain aligned with the current version of this form?

I got a note in the mail from a pension administrator company on behalf of a former employer. I only worked at this employer for a month in 2022, and about $300 was put in a pension fund for me. Upon ...
J S's user avatar
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3 votes
2 answers
371 views

Private pension for frequent country moves?

I hope this is sufficiently specific that it's answerable, I feel very ignorant about this topic, so I'm not even sure I'm asking a good question. I'd like advice on the terminology, and key ...
Clumsy cat's user avatar
1 vote
2 answers
120 views

Caveat for participating in a private retirement fund sponsored by German "Riester-Rente"?

In my occupational pension scheme (VBL) I can, in addition to the legally required private pension insurance (VBL klassik), opt-in to extra private pension insurance (VBL extra). The latter is ...
gerrit's user avatar
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If having lived and worked some years in the UK, how do I estimate the actual expected state pension amount?

The UK government has a state pension forecast calculator. The calculation has a footnote informing the user that it assumes the user will continue paying in for the rest of their working life. This ...
gerrit's user avatar
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5 votes
1 answer
485 views

Is Merging multiple pension scheme pots a good idea?

Since I moved to the UK I changed jobs three times and my employers used different pension schemes. I would like to move the money into one scheme. Do you think it is a good idea? The last scheme is ...
sam's user avatar
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In specie transfer and out of market protection for pension provider changes in the UK

A friend is looking at moving a pension to a new provider. After some research it turns out that an in specie transfer is not available and she could be "out of the market" for anything ...
Peter Rhodes's user avatar
4 votes
1 answer
223 views

Is the bank operating the savings account obliged to deduct the tax before paying the interest over £1,000?

My retired father has savings which he removed a year ago from a UK bank's cash ISA, and placed into another bank's non-ISA savings account. This was to take advantage of the higher interest rate on ...
Michael Harvey's user avatar
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UK pension auto enrollment - when would the assessment deem to remove an employee from a pension scheme?

I am currently working on a payroll IT project. Part of this involves submitting payroll data to a third party API (PayRun.io) that will perform the assessment of the employee as to whether auto-...
Dave B 84's user avatar
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4 votes
1 answer
143 views

Best practice on managing multiple pensions

Is it financially better to keep pensions from various employers separate or to merge them with the latest one? If you do merge them, are penalty fees accrued from the previous pension provider? This ...
fortunia88's user avatar
2 votes
0 answers
36 views

I get a pension from having been a Federal Employee; I also work part-time for my family's business. Do I need to pay into EI?

So, I worked for the Federal government most of my life, I retired 2 years ago and I get my pension. In addition, I work about 30 hrs/week in the office of my family's business, do I have to pay EI? ...
Andrew's user avatar
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3 votes
2 answers
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How much monthly income can I get, as a function of age and initial investment?

Suppose my age is X, and I have Y dollars in cash. I want to give them to an insurance company, or another financial institute, in exchange for a monthly income (pension) of Z for the rest of my life. ...
Erel Segal-Halevi's user avatar
1 vote
1 answer
84 views

SIPP pension withdrawal tax obligations (UK HMRC)

When investing in a SIPP you get tax relief. How much depends on whether you are a basic or higher rate tax payer. For this post, I am focussing on basic rate payer. My understanding is that when you ...
Gary Green's user avatar
6 votes
1 answer
474 views

Are the Vanguard Target Retirement Plans designed for when you turn 65, not for when you plan to retire?

During a presentation around 401k plans, my company's 401k provider just informed us that the "Vanguard Target Retirement " plans are designed for what year I turn 65, not the year I plan to ...
Josh's user avatar
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2 votes
1 answer
155 views

In the UK, from where does your employer take the money to put it into your pension scheme?

I have been reading about the UK workplace pensions schemes but I don't understand them very well. What I have read is that you can choose an amount of money, which is taken from your gross salary, ...
Martel's user avatar
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2 votes
4 answers
94 views

How does tax-deferred pension savings carry any long-term benefit over taxable accounts?

In terms of the total post-tax savings value, I don't see how taxable (e.g. Roth) vs. tax-deferred (e.g. 401(k)) makes a difference. Let me be specific. Suppose tax rate is s, and you dedicate X of ...
J Li's user avatar
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1 vote
1 answer
108 views

Are IFA fees likely to be worth it for UK pension

Building on an excellent question and answer I want to ask a follow-up, or more specific question. I'm now self employed and I have a pension pot from when I was employed. I've got about 20 years left ...
Flirgle's user avatar
  • 11
4 votes
2 answers
106 views

How Does a Workplace Pension Interact With A SIPP In The UK

I currently have a workplace pension with People's Pension. My understanding is that this means that: I pay into it each month My employer pays into it each month The government gives me a certain ...
Undistraction's user avatar
1 vote
0 answers
26 views

What is the meaning of "to the extent attributable to contributions" in IRS Publication 519?

In IRS Publication 519 (Tax Guide for Aliens), in a section about Personal Service Income for pensions, is the following text (emphasis mine): Pensions. If you performed personal services in the ...
Stuart J Cuthbertson's user avatar
1 vote
1 answer
142 views

Starting to save late but expecting a £20k windfall - should I catch up my pension or put it towards a deposit?

I'm in my late 20s, working in London with a cheap living situation but no pension and limited savings. I'm now in a position to start saving but am unsure whether to catch-up on my pension savings (...
user111330's user avatar
3 votes
1 answer
87 views

Easiest way to find pension contributions from previous years?

I've received a letter from my pension provider that I've gone over the annual allowance for pension contributions this year. According to HMRC, I can carry over unused allowance for the past 3 years, ...
anotherdave's user avatar
0 votes
1 answer
76 views

Does monthly social security income gets adjusted by monthly vested benefit

At age 65, I am eligible for a lifetime monthly vested benefit in the amount of a few hundred dollars from my former employer (a non-governmental firm). In the company's benefits handbook, this vested ...
Anthony's user avatar
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3 votes
0 answers
55 views

protected tax-free cash UK Pensions

I have an old pension (with Profits). I was advised to take it out as soon as I could by my Financial Advisor. Having turned 55 I am now in the process of taking it out. When I was 50 I asked for a ...
A Paul Savage's user avatar
7 votes
1 answer
967 views

Foreigner making voluntary US social security contributions to get a pension

Years back, I worked in the USA and made 7 years (28 quarters) social security contributions. I wrote to them a few years back and they said that I could get a pension with a minimum of 40 quarters of ...
Mawg says reinstate Monica's user avatar
6 votes
3 answers
235 views

How do I Value a Defined Benefit Plan

Background My "side hustle" for a while has been the US Navy Reserve. I think I've stopped having fun, and I'm ready to quit and devote that time to my main job, my family, etc. However, one ...
codeMonkey's user avatar
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3 votes
2 answers
133 views

How are annuity rates calculated for money purchase/DC pensions?

I have two pension schemes from two different UK major providers, and they are presumably using whatever the legal requirements are for calculating projected annuity for my pot, but to me they seem ...
Ken Y-N's user avatar
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4 votes
2 answers
85 views

How do I know if a Fund engages in Short Selling

Almost all my investments are done through funds in my pension and the extent of my research into them is through the Fund fact sheets similar to the these. How can I tell if I'm investing in short ...
Jontia's user avatar
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2 votes
0 answers
55 views

Finding green investment funds

I'm trying to find green/sustainable funds to add to my (UK) pension and am finding it quite hard to pick out good candidates. I'm interested more in the green credentials than in the performance. ...
Oliver Kohll's user avatar
1 vote
3 answers
192 views

How does the pension contribution work in the UK?

I do not understand the basics and every source online is just entering into a whole load of details without clarifying what is going on with my money. The contract states that the company will match ...
Joe's user avatar
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4 votes
1 answer
177 views

What counts toward the tax free limit for pension contributions in the UK

I understand I can contribute up to 40k (or 100% of salary) in one financial year, and I will receive tax relief on these payments. I was working on this assumption: employer pension contributions + ...
Dan's user avatar
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5 votes
1 answer
352 views

Why would anyone choose 403b over 457b?

Some employers offer both 403b and 457b as retirement plans. I looked at them, and it seems they are very similar, except that 457b does not have early withdrawal penalty. It seems 457b is better than ...
Mas's user avatar
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4 votes
4 answers
579 views

Is investing this lump sum in one of these two funds for the next 5 years a wise decision?

I'm going to be retiring from my career soon, and as well as receiving my pension, I have also qualified for a lump sum of just over £200,000, which I will receive around January 2021. I won't ...
Rocco's user avatar
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2 votes
1 answer
62 views

Owed taxes for discounted health care after pension cash out

Last year in 2019 my Mom signed up for "Obamacare". At the time she signed up, she was under 400% of the poverty limit, which for 1 person was 12,490 x 4 = 49960. Being under this limit ...
Gabe Johnson's user avatar
3 votes
1 answer
103 views

Why does the ATO have "unclaimed super", should I do something about it?

I am an Australian Citizen currently living in the UK. I logged on to the Australian Tax Office (ATO) website today an the ATO tells me i have unclaimed super. It's about $3000, and is exactly equal ...
Frames Catherine White's user avatar
1 vote
1 answer
2k views

opt-out of pension scheme(EPS) in EPF while changing jobs in India

I have recently changed my job. In the previous job, my employer was making a contribution to the EPS as well, there was no option to opt-out of the pension scheme. But in the new organisation, there ...
kadamb's user avatar
  • 115
0 votes
2 answers
77 views

Tax savings on employer contribution to pension scheme

Consider the following examples (numbers were calculated from tax.service.gov.uk). Annual salary: £20000 Income tax: £1498 National insurance: £1260 Total tax: £2758 Annual salary: £60000 Income tax: £...
user2371765's user avatar
  • 1,064
0 votes
1 answer
68 views

Employer contributions to pension schemes in the UK

What are the investment options available to the employee when an employer contributes to a pension scheme for the employee? Can one invest in US ETFs, mutual funds, and stocks? Does this contribution ...
user2371765's user avatar
  • 1,064
2 votes
0 answers
72 views

Puerto Rico Tax on Pension Income

I am considering purchasing a permanent residence in PR. I am retired. Based on my 3 sources of income below, what would be taxable in PR? Primary - pension from NYS government not subject to NYS ...
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