Waterskier
8th Jul 2007, 19:35
Anyone know the tax treatment of the Cathay's retirement contributions for a US citizen based in HKG.
I understand HK does not tax it until you disburse the money or transfer to an outport base (vested money tax free, rest is taxed).
But how does the IRS view this money? Is it a "qualified retirement plan" so the money is tax deferred? If its not "qualified", Can you include this money in the foreign income exclusion $82,400 tax free? Also does it pay (tax-wise) to contribute extra to the retirement fund?
I understand HK does not tax it until you disburse the money or transfer to an outport base (vested money tax free, rest is taxed).
But how does the IRS view this money? Is it a "qualified retirement plan" so the money is tax deferred? If its not "qualified", Can you include this money in the foreign income exclusion $82,400 tax free? Also does it pay (tax-wise) to contribute extra to the retirement fund?