I am a tax preparer and I'm trying to help a client who is a Peruvian born and now a United States citizen.
Before coming to USA and while living and working in Peru, he accumulate a considerable amount of money in an employer sponsored pension plan. Now he is considering bringing some of that money to take care of some personal needs like buying a house, etc.
How does he supposed to report this money in his tax return? Any especial tax treatment?
I asked IRS and they would not give an straight answer. If anybody has an idea I would appreciate it very much.