I am a US citizen currently working in S. Korea and have been enrolled in a defined contribution plan with my employer. If I end up quitting, the employer transfers the funds in the DC plan to an individual retirement account that I am required to open upon termination.
Is the annual employer contribution taxable even though I have not taken any distributions yet and are the accrued capital gains and dividends taxable when I take the distributions? (then I would need to amend previous tax returns)
If so, is the employer contribution excludable under the foreign earned income exclusion?
If not, am I required to report the employer contributions, gains, and dividends altogether and pay taxes on them upon termination--when the funds are transferred to an individual retirement account?
