Self-Employed Defined Benefit Plan

I have received an unusual question from an attorney related to a Defined Benefit Plan for a Self-employed individual: Does the sole-proprietor who establishes the plan have to reside and work in the United States? Not sure of the specifics behind this, but I would think you'd have to reside here, and the source of your self-employment income would have to be from business conducted in the US.

Thanks for any replies.

Not sure, but I think it depends on where he will file his taxes for this income.

Clearly, a plan can be established in the US that EXCLUDES non-resident aliens. That means, it could also INCLUDE non-resident aliens (workers who ARE NOT citizens but live in foreign country).

That all leads to the inescapable conclusion that if the plan is adopted in the US for a US citizen sole prop, it can INCLUDE non-resident CITIZENS (it actually HAS TO, since you can only exclude non-resident ALIENS).

Remember; the assets must be invested such that they are subject to US courts.

Also note that US Citizens must pay US taxes on income earned anywhere in the world.