Page 58 - International Taxation IRS Training Guides

Cross-Border Pension Plans

in qualified domestic plans benefit from
 Participants

treatment. In general:
favorable tax

• Contributions
to a domestic qualified plan by the taxpayer
or
employer are not includible in taxpayer’s current
income.

• Earnings of
a domestic qualified plan are tax-deferred.

• Distributions
from domestic qualified plan are taxed when
received.

 Certain income tax treaties
address the tax
treatment of
contributions to a foreign plan, plan

and plan distributions.
earnings,

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