### Question
How is the "qualified foreign plan" defined?


### Answer
The term **qualified foreign plan** is defined in *26 U.S.C. § 404A* as follows -

> any written plan of an employer for deferring the receipt of compensation but only if—


(1) such plan is for the exclusive benefit of the employer's employees or their beneficiaries,


(2) 90 percent or more of the amounts taken into account for the taxable year under the plan are attributable to services—


(A) performed by nonresident aliens, and


(B) the compensation for which is not subject to tax under this chapter, and


  

(3) the employer elects (at such time and in such manner as the Secretary shall by regulations prescribe) to have this section apply to such plan

#### Citation:
  - *26 U.S.C. § 404A*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART I-PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC. > Subpart A-General Rule**

