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Rollover of foreign pension money into a U.S. qualified plan


Guest GMedley

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Posted

We have a participant originally from the UK. He still has a balance in a "UK approved pension scheme". He wants to roll this into a 401(k) plan. The prior recordkeeper in the UK seems willing to do this within certain limitations. Assuming these are met, could this money be acceptable in a 401(k) plan? I couldn't find specific mention of this in the code. It doesn't seem to be an "eligible retirement plan" per section 402©(8)(B). Therefore my inclination is that it is not acceptable. But does anyone know of a place where it excludes foreign pension money from being rolled into a qualified plan in the US? I'd like to be able to show him the rule. Thank you.

Posted

Looks to me like you've answered your own question. If it is not "eligible" under IRC 402©(8)(B), then what other definition are you looking for?

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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