tx_dfw
30th Jan 2009, 10:21
Just have a quick question for the US citizens based in HK. How do you treat your retirement fund. The only guidance I can find from the IRS treats it as income - (the part CX contributes would only be taxable not the employee contribution). The problem I have with this is if I decided to leave Cx early and am not fully vested. Then I will have paid tax on money that is no longer mine.
Suggestions??
Waterskier
4th Feb 2009, 19:36
Has anybody from USAB received their W2's yet? Are they mailed to home address or company mailbox? Are they accessible online (via PeopleCX) or some other website.
Thanks
nairda68
5th Feb 2009, 06:47
got mine in the company mailbox.....(by 2nd of february....as US law requires ....)
Oval3Holer
8th Feb 2009, 18:24
Since the CX retirement contribution is not a US-registered and qualified retirement plan, it is all considered taxable income immediately upon receipt. I'm guessing (but don't take MY word for it) that if you don't have the ability to withdraw it, it's not income yet. Therefore, if you leave CX and don't get it, you've never paid tax on it, so big whoop. However, when you DO take the money, you'll be liable for tax payment on it as a lump sum.
I see your point, and agree, that if you pay tax on all of it now, but have no ability to withdraw that amount on which you've paid tax, and then leave CX and lose that part that's not vested, you'd have paid tax on money you never earned.