Corporate Legal Framework to Invest Overseas

Legal structure and the greenback

Foreign Retirement Plan Corporate Legal Framework

This Foreign retirement plan corporate legal framework is the only solution to the IRS rulings in 2014 that demolish U.S. situs deferred compensation structures of working members of limited partnership (LLC/LLP) and the IRS Chief Counsel advises members may be subject to self-employment tax.

[box style=”rounded” border=”full”]Under the new regulatory regime brought to you by the Foreign Account Tax Compliance Act (FATCA), all but one type of existing foreign financial framework used to invest capital outside the U.S. is noncompliant with U.S. reporting.[/box]

This Foreign Financial Account is the Only Tax Deferred Income on Gains & Accumulations Entity

Request the Corporate Legal Framework for a Foreign Retirement Plan – White Paper (see below)

Asset Protection You Can Trust

While this IRS recognized and FATCA registered foreign retirement plan has been available since 1986, it has only recently gained prominence due to globalization of the economy and workforce, transparency in reporting and recognition of the tax protection provided in Double Tax Agreement, Tax Information Exchange Agreement and the Foreign Account Tax Compliance Act. Some of the key functions include:

  1. This Recognized and Registered Foreign Retirement Plan has statutory legal asset protection that is not subject to claims, counter-claims, new parties joined, summons, discovery, depositions, interrogatories and judgments.
  2. This 402(b) protects assets, wherever they may be held, from any claim in the U.S. or in European and Asian jurisdictions; as assets are not “vested” with the individual so long as they are held in the Retirement Plan, they cannot be attached legally.
  3. Since this 402(b) has government regulated legal statute, the administrator cannot be forced to recognize, reveal nor release assets based upon claims or judgments. The retirement plan regulator will not release any information about the assets in the plan nor the names of plan members to support any claim against a member not having been criminally prosecuted; an administrator of this Foreign Retirement Plan cannot be sued nor called to judgment because there is no domestic court which will take receipt of a law suit against this Government Agency performing his fiduciary duties as regulated by that Government’s Law. Domestic law rules because no DTA defines, mentions nor addresses the treatment of claims or judgments against retirement plan members.
  4. This regulated, registered foreign retirement plan (402(b)) and its assets are specifically excluded from being qualified as a Passive Foreign Investment Company (PFIC); and its assets are recognized deferred on reporting.
  5. All AML disclosures and clearance takes place prior to becoming a member of the Retirement Plan; afterwards, it is the 402(b) that is the beneficial owner of any financial accounts (bank/brokerage) to protect the Foreign Financial Institution from any requirement for FATCA reporting.

Secrecy is only as good as you can allow it to be:

If a government goes around with an “in your face” response to a judicial inquiry then they undermine confidence and are suspected of not running a proper show. For example, a Cook Island Trust declares that they ignore creditors or that they provide asset protection by ignoring foreign court judgments. Other countries don’t take kindly to their declaration of being unique. A country is supposed to have laws that are recognized as proper by other countries.

Request the Asset Protection White Paper

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Photo credit: KJGarbutt via / CC BY


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