Mdina Master Trust Retirement Scheme

Tax-efficient retirement benefits for US permanent residents and citizens employed by a company outside the US.

The Mdina Master Trust Retirement Scheme is the first truly tax-efficient retirement plan for US permanent residents and citizens who both work for a company outside the US and are working outside the US themselves. Established as a 402(b) Employees Trust, the Mdina Master Trust Retirement Scheme provides distinctive retirement benefits.

Tax efficient and compliant retirement benefits

US permanent residents and citizens abroad face a challenging time when participating in retirement benefit plans outside of the US. Most local and international retirement plans are based upon an ‘exempt contributions, exempt accrual and tax on exit’ (EET) basis but this is difficult to achieve for a US permanent resident or citizen living abroad.

The US citizen-based taxation system does not favour participation in most foreign pension plans and the IRS generally views these plans, including ones “qualified” under local tax rules, as “nonqualified” under US tax rules. So US permanent residents and citizens participating in a foreign pension plan cannot generally deduct contributions from their US gross income, and must take extra steps to properly report the pension assets.

The Mdina Master Trust Retirement Scheme is designed on a ‘post tax contributions, exempt accrual and exempt on payment’ (TEE) basis directly tackling this issue. The ‘post tax contributions, exempt accrual and exempt on payment in the US’ contract is only available to US permanent residents, and citizens who are employed by a company registered outside of the US.

Added benefits of a Master Trust

Master Trusts are designed for small to medium-sized companies and allow them to access Occupational Pension Schemes without going through the difficult – and often costly – process of setting up and maintaining their own schemes.

The Mdina Master Trust Retirement Scheme covers all the necessary legal and regulatory issues. It has an online investment platform for ease of investment management, members have visibility of their segregated accounts and companies wishing to set up their own bespoke schemes can also be accommodated.

Set up in a sound and secure location

Of the 80+ jurisdictions that TMF Group operates in, we have selected Malta to establish the Mdina Master Trust Retirement Scheme, as it is the only country with a very specific Double Tax Treaty with the US, and specific legislation governing pensions.

Malta, being a full member of the European Union, is a well-regulated and secure financial environment. Provision of pension services is a regulated activity overseen by the MFSA (Malta Financial Services Authority) and all funds are independently audited each year. Our pension scheme is our own, and does not involve third party contractors.

Why work with us?

Choosing TMF International Pensions offers clients and their professional advisers a number of advantages.

  • Global access and substantial international support
  • Flexibility - the freedom to invest in a wide range of asset classes
  • Tax efficiency in planning opportunities
  • Dedicated staff ensure a personal and specialised service
  • Innovative and continual development of financial solutions
  • Value - a simple, transparent, competitive fee structure

To find out exactly how we can help you, speak to our experts.

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