tag:blogger.com,1999:blog-1687943522027007206.post3474710362871597309..comments2023-06-03T17:16:23.390+03:00Comments on Investing by Accident: Running Away from a Keren Hishtalmut?Donnyhttp://www.blogger.com/profile/00393238234242790016noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-1687943522027007206.post-34825336650667977082014-09-08T10:49:43.388+03:002014-09-08T10:49:43.388+03:00I think "yes" and "no". I thin...I think "yes" and "no". I think the Keren Hishtalmut is just like an Israeli pension and should be treated as a 402(b) plan. I don't think the 6 years make a difference for "constructive receipt". The money absolutely belongs to the employee as soon as it is deposited and he could withdraw at any time -- even before 6 years are up. In that case, he will have Israeli tax consequences which makes the withdrawal not financially advisable, but it his money and he could do it. In any case, I think as long as the money is in the KH it is inside of the 402(b) plan (just like the Israeli pension) and should be treated as such. More on this on the next blog.Donnyhttps://www.blogger.com/profile/00393238234242790016noreply@blogger.comtag:blogger.com,1999:blog-1687943522027007206.post-57263566943081520522014-09-08T06:42:50.381+03:002014-09-08T06:42:50.381+03:00any answers to the questions on the previous blog ...any answers to the questions on the previous blog posting?Amerson L.noreply@blogger.comtag:blogger.com,1999:blog-1687943522027007206.post-14845202092102640492014-09-07T17:34:39.909+03:002014-09-07T17:34:39.909+03:00Donny,
I assume that you are going to say that a ...Donny,<br /><br />I assume that you are going to say that a Keren Hishtalmut is not taxed until a withdrawal is made, because a KH is a Section 402(b) plan. However, even if it is a Section 402(b) plan, that is true only for the first 6 years. After that point, you can take out money whenever you wish, which means that it is effectively your money (under the tax doctrine of "constructive receipt"). And any new money that enters a 6 year old Keren Hishtalmut can be withdrawn at any time.<br /><br />Mark Moshe Feldman<br />http://rimonlaw.com/team/mark-feldman<br />US tax attorney resident in IsraelAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1687943522027007206.post-61066746944399974782014-09-05T16:17:39.733+03:002014-09-05T16:17:39.733+03:00No one is more of an American Israeli than me. Pri...No one is more of an American Israeli than me. Prick me and I bleed red, white, blue and white.Donnyhttps://www.blogger.com/profile/00393238234242790016noreply@blogger.comtag:blogger.com,1999:blog-1687943522027007206.post-62217212429996251452014-09-05T14:21:57.404+03:002014-09-05T14:21:57.404+03:00You are Israeli now. I thought you made Aliyah?You are Israeli now. I thought you made Aliyah?Dan H.noreply@blogger.comtag:blogger.com,1999:blog-1687943522027007206.post-16225730341371452042014-09-04T14:33:54.475+03:002014-09-04T14:33:54.475+03:00That would be very un-American. That would be very un-American. Donnyhttps://www.blogger.com/profile/00393238234242790016noreply@blogger.comtag:blogger.com,1999:blog-1687943522027007206.post-6559009995458127862014-09-04T14:27:10.461+03:002014-09-04T14:27:10.461+03:00I can not hesitate to ask: why not renounce? your ...I can not hesitate to ask: why not renounce? your USA citizenship and this problem goes away?Dan H.noreply@blogger.comtag:blogger.com,1999:blog-1687943522027007206.post-87564269533568034822014-09-04T06:47:06.060+03:002014-09-04T06:47:06.060+03:00So it goes. But there is some hope even still. Sta...So it goes. But there is some hope even still. Stay tuned.Donnyhttps://www.blogger.com/profile/00393238234242790016noreply@blogger.comtag:blogger.com,1999:blog-1687943522027007206.post-3457510241986494862014-09-04T06:33:14.705+03:002014-09-04T06:33:14.705+03:00not the answer I was looking fornot the answer I was looking forAnonymousnoreply@blogger.com