Foreign Entity wanting a US plan

[Hojo]

I was wondering if anyone had any experience with this....

We have a Canadian corporation that wants to have a US plan for its US employees. There is no separate US entity. Can this be done?

[MoJo]

Yes. We do it all the time. There are two things to consider: 1) The assets must be in a trust subject to the jurisdiction of U.S. Courts (typically meaning a U.S. based trust with U.S. based trustee(s); and 2) SOME service providers require a U.S. address for purposes of correspondence (especially if an affiliate institution acts as trustee). Just depends.

[Hojo]

Yes. We do it all the time. There are two things to consider: 1) The assets must be in a trust subject to the jurisdiction of U.S. Courts (typically meaning a U.S. based trust with U.S. based trustee(s); and 2) SOME service providers require a U.S. address for purposes of correspondence (especially if an affiliate institution acts as trustee). Just depends.

Are there any other requirements or pitfalls we should be wary of if we advise our client with this?

Also, as an extension ofthe question, if the Canadian entity purchases a US entity and wants to maintain the plan in place, can they (assuming the trust caveat you already mentioned)?