QROPS pension transfers have been around and accessible for a number of years but not for residents of the USA due to strict reporting requirements of the US IRS. Understanding these requirements a new type of IRS friendly and approved trust was created which is able to accept UK pension transfers from US residents.
QROPS USA can have clear benefits compared to leaving your pension funds in the UK:
1. When you retire you will receive all pension income free from UK tax
2. QROPS can provide a higher tax free cash lump sum than UK pensions
3. QROPS allow you to draw down a higher annual income than UK pensions
4. QROPS can be in any currency you want. So reducing currency exchange risk and cost
5. Out of the scope of all future UK tax changes. This means future UK governments cannot increase taxation on your pension or increase retirement age as planned
6. With QROPS your pension benefits will grow tax free, increasing your retirement fund.
7. QROPS offer complete investment freedom and choice.
8. QROPS can be passed 100% to your beneficiaries free of UK Inheritance tax
9. Greater flexibility and freedom to control investments, meaning you can choose a more ´aggressive´ and active investment strategy offering higher growth potential
10. Transparency of costs. Less costs so more money for you.