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Good afternoon,My name is***** and I am an Enrolled Agent, licensed to represent taxpayers in front of the IRS. I have 10 year experience handling a variety of tax preparation and tax resolution issues.I do know that your answer depends upon if Malaysia has a treaty with the US in regards ***** ***** their plan as a qualified retirement plan. If you can give me a few minutes, I will review that information and get back to you.
Hello Customer,From the information I have gathered, in order for the income to be considered "qualified" under Sec 401 of the IRC (Internal Revenue Code), the qualified plan must be created or organized in the US. Or, there must be a treaty between the country that has the retirement account and the US that allows the US to recognize the retirement account as a qualified plan. Since Malaysia does not have a tax treaty with the US, then unfortunately, the dividends will have to be reported as non-deferred income.I'm sorry I was not able to provide you with more positive news. Thank you for allowing us to assist you with your question. If you have any follow-up questions, please let me know. If not, please feel free to go ahead and rate my question. Thank you, ***** ***** a good day.
The income from this plan should be reported under Line 16a and 16b on the 1040 Tax Return. Please refer to the instructions for the 1040 that describes that all worldwide income is reported on that line.http://www.irs.gov/pub/irs-pdf/i1040gi.pdf page 21