Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 2
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.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.