Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
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
Print the post Back To Top
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.

Bill
Print the post Back To Top
No. of Recommendations: 0
Thank you. The funds would not be coming from an employer, but rather a government operated corporation in the foreign country. I suspect they have have been asked this question before...so that frames the question better.

Again, thank you.

RS
Print the post Back To Top