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Author: adlerm Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124819  
Subject: taxes foreign pension plan Date: 6/25/2003 1:08 PM
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I am 58 years old and for the last 27 years have worked for an American pharmaceutical company overseas, in Ecuador. I am an Ecuadorian citizen, but still maintain my U.S. residence and will take an early retirement in August of this year. I pay income and social security taxes in both countries.

Upon my retirement I had planned to roll over the lump sum of my retirement benefits into a qualified account such as 401K, however, my company has informed me that this cannot be done because I am on a foreign pension plan and will be taxed in the U.S. at a rate of 38.6%. Under my particular circumstances, is there any way of accessing to a qualified account or reducing my tax exposure, maybe through a 10 year forward averaging?

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