The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/a-friend-is-seeking-to-rollover-the-proceeds-of-30536373.aspx

Subject:  Re: Tax Implications of "Rollover" Date:  2/11/2013  12:57 PM
Author:  Wradical Number:  117722 of 121572

A friend is seeking to rollover the proceeds of his "401k-like" account in the foreign country where he used to work. The account balance is obviously held in the foreign currency.
I have advised him to call Vanguard (or similar) for their assistance in setting this up.
Additionally, are their recommended Tax Pubs that may cover this issue? It is completely new to me.

Thanks, RS

================================
If it's not a qualified plan under US tax rules (except for being organized in a foreign country) it's not a qualifed plan and doesn't qualify for rollover treatment. The odds of a foreign plan qualifying are slim and none, except in the case of a US company's plan that covers expatriate employees. And in that case they'd still probably be covered under a US-based plan; but maybe not, if a foreign country law required that they be treated the same as the domestic employees.

That said, there are exceptions for some plans, in some countries, pursuant to tax treaties.

So you need to pursue those details as to what kind of plan it is, and that info. has to come from the employer. Vanguard will probably not have that info. And even if they do, they'll tell you they don't give tax advice, and consult your tax advisor.

Bill
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us