Transfering UK private pension to USA (Cash Out)

[polarsub]

Has there been any light shed in this area recently. I want to “cash out” my 34K GBP held in a UK private pension. I want to use it for a second property deposit here in California as the housing market is so deflated right now. I am relatively young and have a few other ducks lined up for retirement and think this would be a good investment for me and my family. That being said, I would really be interested in the tax implications. I have talked to several advisers and they all say it can definitely be done, but no one is clear on what happens the US end. I don’t mind taking a 20% hit this end as I still have enough to secure a home in the price range I am looking at and have already been approved for the mortgage. I’m just wondering if anyone has experienced a similar scenario and if so, how much was the actual cost/fees/taxes etc. I am holding a long term green card, have been here 3 years, I will apply for citizenship this year and live in California.
Hope someone can help! Thanks…

 

[Randy]

California? For goodness sake why? Almost the most expensive place in the USA with taxes and cost of living.

Have you watched too many Hollywood movies or what? There are many, many places better than California to retire and get the most from your savings

 

[polarsub]

Actually this will not be a retirement home. This will be a lakeside cabin that I can enjoy with my family and use my boat for many years to come for a cost of a new car payment. The usage alone will be more than worth the $$. I certainly wouldn’t rule out retiring in California though as I hate the humidity that you get with a places like Texas or Arkansas. As far as the higher taxes and cost of living here, this is all offset by the higher salaries paid here in California so everything is relative.