Office of Chief Counsel
Internal Revenue Service
Release Date: 8/29/2008
: August 21, 2008
: Michael Julianelle
Director, Employee Plans
(Tax Exempt and Governmental Entities)
: Associate Chief Counsel (International)
: UK Pension Rollovers
This memorandum addresses the possible application of Article 18 (Pension Schemes)
of the U.S.-U.K. income tax treaty to a rollover distribution from a U.K. pension scheme
to a U.S. retirement plan. This document may not be used or cited as precedent.
Whether an individual who is a resident of the United States may rely on the
parenthetical language in Article 18(1) of the U.S.-U.K. income tax treaty
1 (the “Treaty”)
to make a tax-deferred rollover distribution from a U.K. pension scheme to a U.S.
retirement plan in circumstances where the distribution would not qualify as an “eligible
rollover distribution” within the meaning of section 402(c)(4).
No. Nothing in Article 18(1) of the Treaty overrides the requirement that the distribution
must qualify as an “eligible rollover distribution” within the meaning of section 402(c)(4).
Convention Between the Government of the United States of America and the Government of the United
Kingdom of Great Britain and Northern Ireland for the Avoidance of Double Taxation and the Prevention
of Fiscal Evasion with Respect to Taxes on Income and Capital Gains, signed on July 24, 2001, as
amended by a Protocol signed on July 19, 2002.
2 All references to “section” are to sections of the Internal Revenue Code of 1986, as amended.