Expertise You Can Read.

Part 2 of the series turns to the payout phase: how distributions from foreign retirement
plans are taxed when the recipient is tax-resident in Germany — a practical guide to the typical
payout scenarios.

When supervisory board members leave Germany, domestic nexus rules, withholding tax
and the extended limited tax liability under § 2 AStG interlock in ways that are easy to
underestimate. The article maps the pitfalls and shows how early, well-documented structuring
avoids them.

Part 1 of the series lays the groundwork: when foreign pension plans become relevant for
German tax purposes and how contributions are treated during the accumulation phase — for
both employer-sponsored and private plans.

The Munich Fiscal Court has held that voluntary contributions by a German-resident

taxpayer to a US Traditional IRA may qualify for German tax relief — challenging the prevailing
view. The article examines the decision and how to handle open cases pending the BFH appeal.

The Federal Fiscal Court (BFH, X R 23/22) has settled how 401(k) distributions received up
to 31.12.2024 are classified under § 22 Nr. 5 EStG. The article analyses the decision, its treaty
foundation, and the system change to full deferred taxation from 2025 under the JStG 2024.

A systematic analysis of how pensions and retirement benefits are allocated and taxed
under the Germany–US tax treaty, including recent developments relevant to internationally
mobile clients.