I have a foreign pension from UK. I am now living in the USA and am an American citizen.
This pension has not been contibuted to for over a decade and doesn't seem to be able to roll over to the USA. So I have to surrender it and pay the taxes.
It is a non qualified pension and I expect it to likely be classed as ALL taxable. Employer paid in, I never paid in. The employer payments might have been taxable benefits but unsure how to prove so assume everything is taxable.
It will all just count as income and add to my regular income, correct?
What I am unsure about is do I have to pay Fica tax on it? Yes Federal and State tax. But Fica as well?
I do not believe I need to pay the 10% early withdrawal penalty as I won't be 59.5 for another year...but this is NOT a qualified pension. It is an IPP. Individual Pension Plan.
Fed at applicable tax %.
State at applicable tax %.
No 10% early withdrawal.
Fica ???
