Foreign Pension distribution – subject to penalty?
A resident alien in the U.S. is taking a distribution from his pension in Switzerland. He is 52 years old. My understanding is this will be fully taxable in the US based upon the US-Swiss Tax Treaty.
My question is whether or not this distribution is subject to the 10% early distribution penalty? I assume it is not since the pension plan does not meet the IRS’s definition of a qualified retirement plan.
Thanks for your input.
Permalink Submitted by Karim Husain on Tue, 2017-06-13 15:54
Is an early distribution from a Swiss Pension subject to the 10% Penalty?