Rollover to a 401(k) Plan

[Guest P.J. 401(k) Guy]

I am wondering if you are "allowed" to have a participant rollover into a plan based in the United States, from a 401(k) plan outside the United States, (England). Does the law state this can not happen? Please help.

[BFree]

I wouldn't think that people in England are subject to the tax code here in the U.S.

[mbozek]

Is the transferring plan a 401(k) plan approved under US law in which the taxpayer is a participant? Or is this the British tax law equivalent of a 401(K) plan. If the later then no rollover is permitted to a US qualfied plan. As I understand it US citizens who work in England are not eligible to participate in the 401(K) type plans approved under British law and but may participate in a US plan. There are previous threads on this question.

BFree- foreign citizens are subject to US taxation if they have us source income, e.g., wages earned for service in the US or income derived from a qualified plan that they particpated in, unless there is a treaty exemption. A foreigner who works outside the US but participates in a US qualified plan would have US source income on the trust earnings paid as part of the benefits.

[BFree]

I was responding to the apparent contradiction of "401k plan outside the United States." The response about the British equivalent not being to be rolled over is in line with my original thoughts.