Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
Kongkong313
Level 1

Foreign retirement/pension plan

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?

2 Replies
Critter-3
Level 15

Foreign retirement/pension plan

If the DC is rolled into an IRA then you did not make a distribution so nothing is taxable.  To make sure nothing is taxable when you leave then make sure it is a trustee to trustee conversion ... do NOT touch the money yourself. 

Kongkong313
Level 1

Foreign retirement/pension plan

Thank you so much for your answer. 

I heard that foreign retirement accounts could be treated differently from US retirement accounts and that tax deferrals may not be available for foreign retirement plans. I hope that's not true..

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.63m
Discussions

Manage cookies
v