Hi,
I'm a US Citizen & reside in the US. I worked in the UK & will shortly be eligible to receive a UK Private Pension while I'm still working in the US. There will be an approximate 5-10 year period when I'll be in receipt of my UK pension & still working in the US.
The UK Pensions system does NOT deduct tax on pension payments since it is a different model. However I'd be bringing this into the US as I had all my UK bank accounts closed without my consent (allegedly due to some anti money laundering law) so I can't keep it off shore.
I keep seeing "Tax Treaty" being mentioned whereby a foreign country has a bilateral agreement with the US to treat income in the manner where it's earned rather than where it's paid out to. But cannot find a definitive answer only some suggestion that if I were RETIRED in the US & I'd probably not pay tax on it. However I'll still be working, so while I'd fall under UK tax code as "RETIRED" (hence paying no tax) under US law I'm still "EMPLOYED" making it complicated.
Is anyone in the same boat as me & have the answer? I can't find anything that covers my situation.
