Asset Protection that Governments Trust
The 401(k) problem is a U.S. Qualified Plan Trustee, upon his demand, would not transfer his money outside of the USA.because:
The IRS has made a ruling in regards to Investing/sending money out of the country from qualified retirement plans. They have ruled against all such foreign transactions.
We learned why foreign investments and foreign bank accounts are not even a discussion for Qualified plans. Employee Retirement Income Security Act (ERISA) has ruled on this question for Qualified Retirement Accounts.
Again, they have ruled against all such direct foreign transactions. Whenever the Department of Labor (DOL) and IRS rule on an IRA issue, they always go with the already stated ERISA position. The IRS and DOL are the ruling bodies for Qualified Retirement Plans. The sections cited for the positions to not send money outside of the USA are included in ERISA section 404(b); DOL regulations section 2550.404b-1; DOL advisory letters 84-14A, 75-80 ad 91-28A.
This is the reasons why we have the only recognized, tax compliant solution for a 401k to have a foreign investment account! The Only Asset Protection that Governments Trust.
In today’s unwaveringly turbulent economy and politics, it is expected that those with valuable assets will go to extreme lengths to protect them, for their own benefit, and to bequeath them to their loved ones in perpetuity. It is obvious that wealth management and asset protection industries are growing. Experts suggest that financial stress has in fact boosted the respective industries, with increasing numbers of people committing to a host of strategies to safeguard their assets against outside risks.
A Trust, Spendthrift Trust, Grantor Trust, An Offshore Trust, Land Trust, Family Partnership, Foundation, Offshore Company, LLC, LTC and all Trusts, Partnerships, Foundations and Company’s leave your assets exposed to judges. None of those attorney driven contracts have an IRS recognized and FATCA registered and authorized government-regulated administrator. Nor are they recognized in Intergovernmental agreements. Many countries have laws imposing secrecy on information about occupational retirement funds (see Section III “Where Secrecy and Privacy are Acknowledged by the IRS”).