I am a naturalized citizen of the US and fully resident in the US. I receive a UK state pension which would be taxable in the UK but by treaty is taxed in the US instead. I am about to start drawing from a UK private pension. My private pension allows me to make a once only 25% withdrawal that would not be taxable in the UK if I still lived there so I believe this 25% payment would be exempt from taxation in the US also according to the treaty. Am I correct?
