Is my pension taxable? SIPP, ISA, GPP - can they be deferred?

In general, pension distributions are taxable both in the US and in the UK to U.S. citizens.

Employer pension - income deferral.  Individual plans - not eligible.

  • Employer retirement plans, as well as individual pension plans (SIPP, GPP), qualify for income deferral.
  • Non-pension investment products with income deferral allowed in the UK (ISA) are not eligible for income deferral in the U.S. 

Deferral of income is a privilege - not many countries offer this.

Most countries do not have the privilege of income deferral for any pension plans. Only a few countries and the UK is one of them, have this privilege but it only applies to employer pension, not to individual retirement plans.

So what does this mean for my tax return?

Of these plans, only growth in the ISA is included in your annual income. When you actually receive it will be excluded from the taxable portion of pension distributions.

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