Pension Question US or UK Planning?

[jadmac 8]

Hi guys, 

So I'm 32 and have decided to continue paying UK NI contributions. 

I am currently self-employed, so I've also opened up a US based 401k. 

I've been made aware of factors like the Windfall elimination provision (WEP). 

I'm also interested to know how your US spouses pension comes into it too? 

In any case, I'm just wondering how to navigate this area? Resources on the issue seem to be very sparse and since it's multifaceted, I don't quite know how each influence the other. 

Would you focus on a US pension? Does a spouses pension a consideration? 




 

[P055UM 286]

51 minutes ago, jadmac said:

Hi guys, 

So I'm 32 and have decided to continue paying UK NI contributions. 

I am currently self-employed, so I've also opened up a US based 401k. 

I've been made aware of factors like the Windfall elimination provision (WEP). 

I'm also interested to know how your US spouses pension comes into it too? 

In any case, I'm just wondering how to navigate this area? Resources on the issue seem to be very sparse and since it's multifaceted, I don't quite know how each influence the other. 

Would you focus on a US pension? Does a spouses pension a consideration? 




 

Pretty sure WEP only applies to benefits paid by the Social Security Administration. So this is not a consideration when comparing NI and 401k.

[P055UM 286]

 

There’s a little from this discussion I had about a year ago.

 

Also, perhaps it is different for you as you are self employed, but I applied to make voluntary NICs as an employed person last August. HMRC JUST replied to me this week. Hopefully I’ll get the reply in the mail this side of Christmas. 

Edited June 26, 2023 by AW1704