QUESTION: Do you know if your answer (about offshore pension accounts)
applies to a SEP-IRA as well? My plan was for my one person
California corporation to deduct money for a retirement plan, e.g. a
SEP-IRA directed to the sole employee, who is living overseas permanently.

BTW you should have a link for donations--I would donate something for
your efforts. LJP

REPLY: I'm assuming you are referring to my recent comments about a
retirement plan with a foreign trust for non-resident alien employees
of a U.S. corporation under tax code section 404(a), or deductions for
contributions to a plan for employees of a foreign subsidiary of a
U.S. corporation under section 406. With respect to section 404(a), it
would probably make a difference if the employee who lives overseas is
you or is unrelated to you.

I only know enough about the rules for pension and other qualified
plans to know that they are very tricky and can be mis-leading to
those who don't devote a lot of time to this part of the tax code. You
would need to consult with a pension specialist to find out if either
of these two code sections are available for a SEP-IRA. If there are
any pension specialists on this list who would like to answer the
question, I'll be glad to pass it on.

As for making some kind of contribution, Offshore Press and I sponsor
this list as a way to advertise the books, newsletter, seminars and
consulting services available through Offshore Press at
www.offshorepress.com.

Vern
www.offshorepress.com