Skybound Wealth USA

Skybound Wealth USA Clarity for your wealth. Confidence for your future.

Helping individuals and families make confident financial decisions - and when life extends abroad, we're right there with you.

For decades, a UK pension could reduce a worker's US Social Security benefit through the Windfall Elimination Provision....
09/03/2026

For decades, a UK pension could reduce a worker's US Social Security benefit through the Windfall Elimination Provision. Many retirement projections built before 2025 still assume that reduction applies.

The Social Security Fairness Act, signed January 5, 2025, repealed the WEP and its companion rule, the Government Pension Offset, retroactive to January 2024. A UK pension no longer reduces the US Social Security calculation, and the change is large enough to shift optimal claiming age, pre-RMD Roth conversion headroom, and the taxable-income bracket picture. Households that modelled retirement around a 40 to 50% WEP reduction need a fresh SSA benefits estimate, not an adjustment to the old one.

Benjamin Hadley, Private Wealth Partner at Skybound Wealth USA, discusses what the repeal changes for UK-origin US residents drawing both benefits.

https://www.skyboundwealthusa.com/news-and-insights/uk-pension-and-us-social-security-after-the-wep-repeal-how-the-2025-rules-affect-your-benefits

To re-run your Social Security and UK pension projection with Ben:

https://www.skyboundwealthusa.com/meet-the-team/benjamin-hadley

Important disclosure:
This material is provided for informational and educational purposes only and does not constitute investment, tax, or legal advice. Individual case processing following the WEP and GPO repeal was still underway through 2026; readers should confirm current status with the Social Security Administration and a qualified cross-border adviser before relying on updated projections.

SOAR brings together insight from across the Skybound Wealth group, and Issue 8 includes contributions from three of our...
08/31/2026

SOAR brings together insight from across the Skybound Wealth group, and Issue 8 includes contributions from three of our advisers.

Tom Pewtress, Joselyn Pfeil, and Benjamin Hadley, all feature in this issue, each bringing a different piece of expertise to a magazine built for people managing money across more than one country.

Read SOAR Issue 8:

https://www.skyboundwealth.com/news-and-insights/soar-issue-8

A Gulf posting is one of the more tax-efficient postings available to an internationally mobile career. Almost none of t...
08/25/2026

A Gulf posting is one of the more tax-efficient postings available to an internationally mobile career. Almost none of that efficiency carries into the US tax system.

The end-of-service benefit is typically the largest pre-arrival decision most Gulf departures face: received before US residency starts, it typically sits outside the US tax net; received after, it's ordinary income with no foreign tax credit available to offset it. Most Gulf states have no comprehensive tax treaty with the US, so the pension deferral that softens a UK or EU move isn't available here. Offshore bonds and international pension plans often fail US tax tests and carry PFIC exposure on top.

Tom Pewtress, Private Wealth Partner & Head of USA at at Skybound Wealth USA, discusses the accounts and timing decisions that shape a Gulf-to-US move.

https://www.skyboundwealthusa.com/news-and-insights/moving-from-the-middle-east-to-the-us-for-work-a-pre-arrival-financial-checklist-for-expatriate-professionals

To plan your Gulf departure with Tom:

https://www.skyboundwealthusa.com/meet-the-team/tom-pewtress

Important disclosure:

This material is provided for informational and educational purposes only and does not constitute investment, tax, or legal advice. Timing of end-of-service benefits and offshore structure classification are fact-specific. Individual circumstances vary and readers should consult qualified tax advisers before making pre-arrival decisions.

Do you have to close your 401(k) or IRA when you leave the United States?No, but your tax position may change significan...
08/21/2026

Do you have to close your 401(k) or IRA when you leave the United States?

No, but your tax position may change significantly.

A U.S. citizen leaving the country generally remains subject to U.S. tax on worldwide income. A foreign national who leaves the United States and becomes a non-resident alien may move into a very different tax framework, where the focus is generally on U.S. source income.

That difference matters.

Retirement account distributions, withholding, treaty relief, early distribution rules and custodian reporting can all depend on the individual’s tax status, account type, age, residence and applicable treaty.

Dividends from U.S. stocks may be subject to withholding unless reduced by treaty. Capital gains on ordinary U.S. shares may be treated differently from U.S. real estate or real property interests.

The biggest mistake is assuming the account rules are the same after departure.

The account can often remain open. The planning framework around it may need to be rebuilt.

https://www.skyboundwealthusa.com/news-and-insights/leaving-the-united-states-a-practical-guide-to-401-k-s

DISCLOSURE
This content is for general informational purposes only and should not be treated as personalized investment, financial, tax, legal or pension advice. Tax rules, treaty treatment and pension rules vary by individual circumstances and jurisdiction. You should seek advice from a qualified tax or legal adviser before taking action. Skybound Wealth USA, LLC is an SEC registered investment adviser. Registration does not imply a certain level of skill or training.

A household with a UK pension, a 401(k), an IRA, a Roth IRA, and two state pensions ahead has five or more income source...
08/19/2026

A household with a UK pension, a 401(k), an IRA, a Roth IRA, and two state pensions ahead has five or more income sources to sequence in retirement, and the order can change the lifetime tax bill by a wide margin.

UK pension drawdown is taxed in the US as ordinary income under the treaty, and UK tax withheld generates a foreign tax credit, but only if there's enough US tax in the same basket to absorb it; credit that isn't used carries forward for just ten years. RMDs begin at 73 (75 for those born 1960 or later), narrowing the sequencing window from that point on. The UK's 25% tax-free lump sum has an unsettled US tax position that needs its own documented treatment before it's taken.

Benjamin Hadley, Private Wealth Partner at Skybound Wealth USA, discusses the sequencing considerations that shape lifetime tax outcomes for UK-origin US households.

https://www.skyboundwealthusa.com/news-and-insights/which-retirement-account-should-you-withdraw-from-first-uk-pension-vs-ira-vs-401-k-withdrawal-order

To map your withdrawal sequence with Ben:

https://www.skyboundwealthusa.com/meet-the-team/benjamin-hadley

Important disclosure:
This material is provided for informational and educational purposes only and does not constitute investment, tax, or legal advice. Foreign tax credit rules, RMD ages, and the US tax treatment of the UK 25% lump sum are subject to change and depend on individual facts. Readers should consult a qualified cross-border tax adviser before sequencing withdrawals.

Can you keep your 401(k) after moving abroad?Usually, yes.Moving overseas does not automatically close the account, trig...
08/13/2026

Can you keep your 401(k) after moving abroad?
Usually, yes.

Moving overseas does not automatically close the account, trigger tax or remove its U.S. tax deferred status. A 401(k) remains a U.S. retirement plan governed by U.S. rules.

What often changes is the servicing experience.

Some plan administrators restrict functionality once a foreign address is added. That can affect investment changes, rebalancing, online access, phone verification, beneficiary updates or distribution processing. These restrictions are usually provider policies, not IRS rules, and they vary widely.

There may also be withholding questions when distributions begin. Certain payments to nonresidents may be subject to U.S. withholding unless a treaty or other rule reduces the rate.

Then there is the currency issue. If your future spending is in GBP, EUR, CHF or AED, a USD denominated 401(k) is not just a retirement account. It is also a currency exposure.

Keeping the account may be possible. Managing it properly from abroad is the real planning question.

https://www.skyboundwealthusa.com/news-and-insights/what-really-happens-to-your-401-k-when-you-move-abroad

DISCLOSURE

This content is for general informational purposes only and should not be treated as personalized investment, financial, tax, legal or pension advice. Tax rules, treaty treatment and pension rules vary by individual circumstances and jurisdiction. You should seek advice from a qualified tax or legal adviser before taking action. Skybound Wealth USA, LLC is an SEC registered investment adviser. Registration does not imply a certain level of skill or training.

FEIE or Foreign Tax Credit?For U.S. expats, this is not just a tax filing choice. It can affect retirement planning too....
08/06/2026

FEIE or Foreign Tax Credit?

For U.S. expats, this is not just a tax filing choice. It can affect retirement planning too.

The Foreign Earned Income Exclusion allows qualifying foreign earned income to be excluded from U.S. taxable income. That can be valuable, especially in low tax jurisdictions.

But there is a trade off. Income excluded under FEIE may not support IRA or Roth IRA contributions. If all earned income is excluded, there may be no eligible compensation left to contribute against.

The Foreign Tax Credit works differently. The income generally remains in the U.S. taxable calculation, but credit may be available for foreign tax paid. In higher tax countries, that credit may reduce or eliminate U.S. federal tax on the same income while potentially preserving eligible compensation for retirement contribution purposes.

Neither route is automatically better.

The right answer depends on country of residence, tax paid locally, income type, spouse position, future plans and whether retirement contributions matter.

For expats, tax planning and retirement planning should not be treated as separate conversations.

https://www.skyboundwealthusa.com/news-and-insights/feie-vs-foreign-tax-credit-expats

DISCLOSURE
This content is for general informational purposes only and should not be treated as personalized investment, financial, tax, legal or pension advice. Tax rules, treaty treatment and pension rules vary by individual circumstances and jurisdiction. You should seek advice from a qualified tax or legal adviser before taking action. Skybound Wealth USA, LLC is an SEC registered investment adviser. Registration does not imply a certain level of skill or training.

When you leave a US employer, there are generally four options for your 401(k): leave it in place, roll it to a new empl...
08/03/2026

When you leave a US employer, there are generally four options for your 401(k): leave it in place, roll it to a new employer plan, roll it to an IRA, or take a distribution. Rolling it into a foreign pension is generally not one of them - attempting to do so could be treated as a distribution, potentially triggering US income tax and, depending on your age, an additional early withdrawal penalty.

The right option depends on a range of factors including fees, investment choices, cross-border tax treatment, and what your retirement looks like across multiple jurisdictions. Rolling to an IRA generally offers flexibility but may result in different creditor protection compared to a 401(k) plan (protections can vary by state). Leaving it in place can be simpler, but provider restrictions for foreign residents may limit what you can do with it.

Tom Pewtress, Private Wealth Partner & Head of USA at Skybound Wealth USA, discusses the 401(k) rollover decision for Americans abroad - the main options, what may change when you’re overseas, and how to approach the decision with the full cross-border picture in view.

https://www.skyboundwealthusa.com/news-and-insights/a-practical-guide-to-401-k-rollovers-for-americans-living-abroad

To talk through your 401(k) rollover options with Tom:

https://www.skyboundwealthusa.com/meet-the-team/tom-pewtress

Important disclosure:
This material is provided for informational and educational purposes only and does not constitute investment, tax, or legal advice. Creditor protection rules vary by state. Tax rules are subject to change. Individual circumstances vary and readers should consult qualified advisers before making decisions.

Does U.S. estate tax still matter if you live abroad?For U.S. citizens, yes.Residency outside the United States does not...
07/29/2026

Does U.S. estate tax still matter if you live abroad?

For U.S. citizens, yes.

Residency outside the United States does not automatically remove a U.S. citizen from the U.S. estate tax system. Foreign property, overseas bank accounts, foreign pensions and non-U.S. investments may all need to be considered when assessing the gross estate.

For expats married to a non-U.S. citizen spouse, the planning can become more complicated. The unlimited marital deduction that applies between U.S. citizen spouses does not automatically apply in the same way where the surviving spouse is not a U.S. citizen.

Then there are local rules.

Forced heirship in parts of Europe. Sharia influenced succession rules in some jurisdictions. Local probate rules. Questions over whether a U.S. will is effective for assets held abroad.

Estate planning for U.S. expats is not only about tax. It is about making sure the right assets pass to the right people, in the right way, under more than one legal system.

DISCLOSURE

This content is for general informational purposes only and should not be treated as personalized investment, financial, tax, legal or pension advice. Tax rules, treaty treatment and pension rules vary by individual circumstances and jurisdiction. You should seek advice from a qualified tax or legal adviser before taking action. Skybound Wealth USA, LLC is an SEC registered investment adviser. Registration does not imply a certain level of skill or training.

Every US expat faces a choice between FEIE and the Foreign Tax Credit - and the full downstream impact of the FEIE elect...
07/27/2026

Every US expat faces a choice between FEIE and the Foreign Tax Credit - and the full downstream impact of the FEIE election is often underappreciated.

FEIE can exclude a significant amount of earned income from US taxation (the exclusion amount is adjusted annually by the IRS). It may sound like the obvious choice. But FEIE-excluded income generally cannot fund IRA or Roth IRA contributions. Electing FTC instead may preserve that contribution eligibility - but could result in a higher US tax bill on the relevant income. In zero- or low-tax jurisdictions, FTC may generate little or no credit to offset that bill.

The decision can have implications for retirement planning, Roth conversions, and contribution strategy that a single-year view may not fully capture.

Sam Ling, Private Wealth Adviser at Skybound Wealth USA, discusses the FEIE vs FTC decision - how each generally works, when each may make sense, and how the choice could affect other areas of your financial plan.

https://www.skyboundwealthusa.com/news-and-insights/feie-vs-foreign-tax-credit-expats

To model the FEIE vs FTC decision for your own position with Sam:

https://www.skyboundwealthusa.com/meet-the-team/sam-ling

Important disclosure:
This material is provided for informational and educational purposes only and does not constitute investment, tax, or legal advice. FEIE exclusion amounts and tax rules are subject to change. Individual circumstances vary and readers should consult qualified advisers before making decisions.

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