Profit Sharing Plan - Domestic vs. Foreign Trust

[Guest Peter Riggins]

Can a qualified Profit Sharing Plan currently maintained through a Domestic Trust have its assets transferred to a Foreign Situs Trust and still receive tax exempt status and favorable tax treatment for contributions and distributions?

[mbozek]

A qualified plan must be established using a domestic trust which is located in the US. Moving the assets to a foreign situs trust will jepordize the tax exempt status of the plan and favorabile treatment of the distribuions.