A participant in a 401(k) plan heard that he can roll money from his plan here in the USA to his plan in Israel. He is currently living and employed here in the USA, but previously was employed in Israel and still has money in the plan. Is this a tax-free rollover??
KIP KRAUS
Mar 6 2001, 11:19 AM
Just my guess, but I don’t know how a foreign pension plan not established under our tax code can qualify as a rollover vehicle. How does the IRS know when this money is eventually distributed and how do they control the payment of US taxes on an eventual distribution?
That's what I thought, but I wanted to get a couple of opinions.