Provident fund to USA

[Taylor01]

Just curious if anyone has taken their provident home with them to the US. My check should be over 100K and just wondering the best way to get it home if not doing a direct rollover to another retirement account. Thanks for any helpful tips.

[harry the cod]

Just cash it in. The Provident fund is really nothing more than a savings account which is registered in the Isle Of Man. I believe you can also keep it running after you leave EK so have the option of drip feeding it back to the US as and when.

Why don't you contact Mondial and ask them. It's free and you get 2 consultations per month. I'd also back that up with an independent financial advisor/accountant who is expert on US tax law.

Harry

[typhoonpilot]

The "A" fund portion is taxed as ordinary income in the year that your receive it unless you have been declaring the contributions as income.

As long as you declare the income and pay the required tax there is no special method of returning the money to the USA. Just wire it directly to whatever account you want to place it in.

When you leave Emirates they give you a number of options for the Provident Fund money. You can take it as cash (check really) paid on the day you leave; you can have it wired to an account of your choice (which will be done 3-4 weeks after you leave); plus two other choices which I forget (they are on the form though).

Harry, the option to keep it in the Provident Fund is only available if you "retire" from Emirates.

So with $100K, probably $70K is "A" fund taxed at around 33% you'll be writing a check to the IRS for $23,000. It's just wonderful to be an American sometimes :ouch:


TP

[Taylor01]

Thanks guys! It has been a pleasure flying with all of you!