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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Do inbound gifted monies require a credit unlock?

My credit has been frozen for the last 20 years and I unfreeze when necessary. I am being told that I need to unfreeze my credit in order to receive these funds. Why would my credit need to be ...
Matthew Long's user avatar
0 votes
0 answers
12 views

EPS not deducted by some employers but some have deducted

I started my service in 2012, EPF and EPS both were deducted. Later I closed this EPF account and withdred money from EPF, EPS still shows amount. Then when I switched organisations till 2018 EPS was ...
RootPhoenix's user avatar
2 votes
1 answer
254 views

Should I Salary Sacrifice everything except minimum wage, if I can live off savings?

Summary: We live off savings, don't need my salary, should I 'salary sacrifice' everything to our pension except minimum wage, for the NI savings? We (me, wife and son) live entirely off my savings, ...
Martin Home's user avatar
0 votes
1 answer
62 views

Is an accumulation of 100 deferred monthly pension payments, all paid together in one check, eligible for tax-free rollover to an IRA?

A relative born in 1951 asked me to figure out if an unusual one-time payment from a pension plan is eligible for a tax-free rollover to her IRA. It’s not a typical “lump sum” payment, but an ...
MTA's user avatar
  • 1,483
4 votes
1 answer
2k views

Advice for investing money for a 15-year old

Hope this is on-topic for here. I'm looking for some advice on the best way to handle a pension. I would like to have the money paid into an account for my 15-year old daughter. The lump sum is about £...
DreamingOfSleep's user avatar
1 vote
2 answers
219 views

Can the UK devalue government pension schemes?

UK government funded roles are notable for offering defined benefit pension schemes in an era where defined contribution schemes are the norm in the private sector. I'm interested in current NHS and ...
P. Hopkinson's user avatar
9 votes
2 answers
2k views

What happens to pension schemes when they run out of beneficiaries?

At a very crude level: Beneficiaries put money into pension schemes (actually, their employers pay into the schemes on their behalf, but w/e, money goes in). The pension schemes pay money back to ...
P. Hopkinson's user avatar
2 votes
1 answer
403 views

What's the consequence of not filling out IRS Form W4P accurately

Question about federal tax withholding for pensions in the US. I've decided to dig into a pension and they require me to fill out a form W4P for federal tax withholding. Our other income is from ...
Hilmar's user avatar
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0 votes
0 answers
57 views

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
85 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
  • 113
1 vote
1 answer
197 views

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
165 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
49 views

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
154 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
237 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
  • 163
2 votes
1 answer
183 views

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
  • 1,281
1 vote
1 answer
124 views

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
294 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
106 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
  • 227
1 vote
0 answers
52 views

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
3 answers
2k 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
0 votes
0 answers
34 views

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 ...
zee's user avatar
  • 131
3 votes
2 answers
386 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
127 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
  • 3,213
0 votes
1 answer
50 views

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
  • 3,213
5 votes
1 answer
490 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
  • 51
0 votes
0 answers
37 views

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
310 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
0 votes
0 answers
45 views

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
  • 101
4 votes
1 answer
144 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
  • 21
3 votes
2 answers
123 views

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
94 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
478 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
  • 334
2 votes
1 answer
192 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
  • 1,281
2 votes
4 answers
95 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
  • 145
1 vote
1 answer
113 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
110 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
143 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
90 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
77 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
  • 87
3 votes
0 answers
56 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
1k 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's user avatar
  • 405
6 votes
3 answers
256 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
  • 1,639
3 votes
2 answers
140 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
  • 150
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
  • 295
3 votes
0 answers
66 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
197 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
  • 13
4 votes
1 answer
191 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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