Advanced Underwriting Consultants

Question of the Day – June 22

Ask the Experts!

The professionals at Advanced Underwriting Consultants (AUC) answer the tax and technical questions posed by producers.  Here’s the question of the day.

Question: May money may be moved tax-free from a U.S.-based IRA to a foreign retirement plan?  May money be transferred from a foreign retirement plan into a U.S. IRA?

Answer: No.

U.S. tax rules dictate the kinds of accounts that can transfer money to an IRA.  All such accounts are U.S.-based retirement accounts.  No foreign accounts qualify under the rules.  Therefore, money from a foreign retirement plan may not be rolled into a U.S. IRA.

Similarly, the rules limit the kinds of accounts that qualify for tax-free rollover from an IRA.  Foreign accounts are not included in the rules, so moving money from a U.S. IRA to a foreign retirement plan would not be a tax-free rollover.

Have a question for the professionals at AUC?  Feel welcome to submit it by email.  We may post your question and the answer as the question of the day.