Funding a Canadian citizens 401(k) with US

This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
QUESTION:
We have recently hired a Canadian citizen to work the sales territory for us
in Canada. He was given 4% of annual eraning for PS each year.  Under our US
401(k) plan we fund 2% in cash and 2% in company stock.  The Co stock
portion in the 401 (k) is frozen and cannot be traded, nor can additional
stock be bought.  We also have a vesting period of 5 years.  How can we fund
our Canadian citizens PS portion and implement a veating schedule to prevent
him from taking the un vested portion should he decide to quit prior to
being 100% vested?
=-------------------------------------------------------
david ingram replies:
The last thing a Canadian Resident wants is a 401(K) that he or she makes contributions to.  He will NOT  get it as a deduction on his Canadian return and have to pay US and Canadian tax when it comes out. 
With all due respect, this is not the forum to ask this question.  You should set up a paid  phone consultation, preferably a conference call with the Canadian employee, to get the rules he is living under clear to everyone.
I would charge $350 an hour / minimum to deal with this
david ingram
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/fb248bc0/attachment.htm
---------------------- multipart/alternative attachment--

Trackback

Trackback URL for this entry: http://www.centa.com/trackback.php/UsCaWeekofMon20040112000655.html

No trackback comments for this entry.

0 comments