Rollover into plan from a non-USA retirement plan

[Santo Gold]

We have an employee in a current USA 401k plan who has a large retirement plan account in a Mexico-based retirement plan from his previous employer (non-related to the current employer in the USA). The USA plan accepts rollovers from other plans, IRAs, etc. But since the Mexico plan is not a 401(a) type of account, I assume this could NOT be rolled over into the USA plan, is that correct? Any way he could roll it into the USA plan?

Thanks

[Lou S.]

You assume correct.

Foreign retirement plans can not be rolled in to US plans as far as I know is any way.

[My 2 cents]

Rollovers probably have to come from qualified plans. That would seem to preclude rollovers from non-USA plans.

[Peter Gulia]

A treaty between the United States and another nation might include provisions that could result in some kinds of plans being treated as analogous to a U.S. qualified retirement plan for some rollover purposes. (I don't know what the U.S.-Mexico treaty provides.)

Your client's plan administrator might want its lawyer's advice about whether and how to consider and interpret such a source of law if a participant's request to make a rollover contribution raises the point.

[QDROphile]

The tax code is quite specific about can be rolled over into a qualified plan. If there is a treaty that provides an exception (so highly doubtful that I am surprised at the suggestion, but it is based on legitimate principle), a plan administrator has no duty to investigate. The proponent of the rollover must present the argument and the authority. Even then, the plan terms probably might not allow the rollover even if the law does. The plan terms will track the code language and definitions quite closely and the tax code is quite specific about can be rolled over into a qualified plan. Unless the sponsor is willing to amend the plan, the tax treaty would have to be phrased in a way that coordinates with the tax code/plan language.

[Santo Gold]

Thanks to all for the great replies. Would rolling it into a USA IRA be an option, or would similar restrictions apply?

Thanks