OnDemand

U.S. Taxation of Foreign Retirement Plans: The 402(b) Puzzle

Price: $224 OnDemand

FULFILL ALL YOUR CONTINUING EDUCATION CREDITS FOR $399

Sign up today for an entire year of unlimited access to relevant, timely professional learning courses, including webinars, eLearning courses and OnDemand offerings, and keep your professional credits up to date. All for just $399.

Learn more about the subscription!

SUBSCRIBE NOW

DESCRIPTION

Foreign retirement plans, and certain share plans, are often in funded arrangements which result in taxation to the participants under section 402(b).  There are a number of implications on not just the employees, but also the employer (such as payroll obligations and impact on corporate deductions).

Section 402(b) impacts U.S. citizens and green card holders in such plans regardless of where services are provided globally, and impacts foreign inbound employees who remain in foreign funded plans during U.S. assignments.

The presenters will discuss the following topics, and in the process touch on questions on which guidance from the IRS and Treasury is needed, including:
1.Should section 402(b)(4) apply to assignees (inclusion in gross income of the vested accrued benefit each year)?  What is a reasonable approach to its application?
2.For foreign inbounds, is there any protection with respect to amounts vested and earned prior to providing services within the United States?
3.Why should section 402(b), and particularly section 402(b)(4), apply to foreign plans when the legislative history clarifies its intended application is to U.S. qualified plans that become disqualified?

The discussion during the webcast will bring to light the issues and risks involved of noncompliance with the rules, and attempt to address some practical implications for companies and employees.

Educational Objectives:
• Understand the rules of Section 402(b), including the basis rules under section 72
• Understand the employer and employee implications
• Understand the treaty applications and limitations
• What should be considered before and during assignments of U.S. outbound and inbound assignees in plans subject to section 402(b)

Who would benefit most from attending this program?
Tax attorneys

SPEAKERS

JIM KLEIN, SENIOR COUNSEL, PILLSBURY WINTHROP SHAW PITTMAN LLP

• Joined Pillsbury December 2010
• Formerly tax partner at Deloitte 1998-2010, principal at Towers Perrin (now Towers Watson) 1980-1998, corporate attorney Union Carbide (now Dow) 1974-1980
• Primary focus: international compensation and benefits, emphasis on tax planning and legal compliance for employee and employer
• Clients mostly very large multinationals, some individual clients
• Typical projects: mobile executive tax compliance and planning, international pension plan design, international stock plans, corporate E&P effects of global pension cost, US tax and legal analysis of non-US incentive plans
• J.D. Columbia Law, LL.M (Tax) NYU, admitted in NY


VEENA MURTHY, DIRECTOR, KPMG LLP

•Joined KPMG March 2009
•Formerly at Baker & McKenzie, LLP, in-house benefits tax counsel at IBM Corporation, among other positions
•Currently a Vice-Chair, Subcommittee on Multinational Benefits & Compensation, ABA Tax Section, Joint Committee on Employee Benefits
•Adjunct Professor of Law at Georgetown University Law Center, LL.M Taxation program
•Advise on broad range of compensation and benefits tax issues, including U.S. tax treatment and planning when delivering compensation and benefits across international borders, on both employee and employer levels
•J.D. Cardozo Law School, LL.M (Tax) NYU Law School, admitted in NY