1. U.S. TAXATION OF SWISS RETIREMENT AND PENSION FUNDS Milan K. Patel, J.D., LL.M. (Taxation) Anaford AG 23 September 2013

2. Swiss Social Security System Pillar I – Compulsory for everyone – Old-age and survivors’ insurance (AVS) – Invalidity insurance (AI) Pillar II – Compulsory for salaried persons – Occupational benefit plan (PP) Pillar III – Voluntary basis – Individual provident measures

3. U.S. Foreign Tax Credit I.R.C. § 901(b)(1): “the amount of any income, war profits, and excess profits taxes paid or accrued during the taxable year to any foreign country ….”

4. U.S. – FTC Computation General

5. Deferred Compensation – 409A Qualified Employer Plans – 401(k) – Individual Retirement Accounts (IRAs) Nonqualified Deferred Compensation Plan

6. U.S. – FTC Computation With Pillar II

7. Relief??? Bilateral Agreements – Income Tax Treaty – Totalization Agreement Certain Foreign Plans – Treas. Reg. § 1.409A-1(a)(3)(iv)

8. Bilateral Agreements U.S. – Swiss Income Tax Treaty (1 Jan 1998) – Article 18 (Pensions and Annuities) – Article 19 (Government Service and Social Security) U.S. – Swiss Totalization Agreement (1 Nov 1980) – Old-age, survivors, and invalidity covered – Unemployment, occupational benefit plans, and social welfare not covered

9. Certain Foreign Plans Treas. Reg. § 1.409A-1(a)(3)(iv): “In addition, the term nonqualified deferred compensation plan does not include a social security system of a foreign jurisdiction to the extent that benefits are provided under or contributions are made to a government-mandated plan as part of that foreign jurisdiction’s social security system.”

10. Anaford AG Tödistrasse 53 CH-8002 Zürich – Switzerland +41 44 567 8805 | Main Milan K. Patel milan.patel@anaford.ch +41 44 567 8808 | Direct

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