Globalization of the employee workforce: Who does the plan cover and what International laws apply?

The most common issues include: (1) special coverage rules for nonresident aliens and treatment of employees in U.S. territories with respect to testing of U.S. plans; (2) determination of limits for participants with foreign source income; (3) the impact of sourcing rules on withholding taxes; (4) the foreign tax credit limitation; and (5) withholding on retirement plan distribution for foreign nationals. [...]it is important to note that if the qualified retirement plan does not exclude such nonresident alien then he or she is treated as a nonexcludable employee for coverage testing purpose.