[Code of Federal Regulations]
[Title 26, Volume 5]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.404(a)-11]

[Page 448]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.404(a)-11  Trusts created or organized outside the United States; 
application of section 404(a)(4).

    In order that a trust may constitute a qualified trust under section 
401(a) and be exempt under section 501(a), it must be created or 
organized in the United States and maintained at all times as a domestic 
trust. See paragraph (a) of Sec. 1.401-1. Paragraph (4) of section 
404(a) provides, however, that an employer which is a resident, a 
corporation, or other entity of the United States, making contributions 
to a foreign stock bonus, pension, or profit-sharing trust, shall be 
allowed deductions for such contributions, under the applicable 
conditions and within the prescribed limits of section 404(a), if such 
foreign trust would qualify for exemption under section 501(a) except 
for the fact that it is a trust created, organized, or maintained 
outside the United States. Moreover, if a nonresident alien individual, 
foreign corporation, or other entity is engaged in trade or business 
within the United States and makes contributions to a foreign stock 
bonus, pension, or profit-sharing trust, which would qualify under 
section 401(a) and be exempt under section 501(a) except that it is 
created, organized, or maintained outside the United States, such 
contributions are deductible subject to the conditions and limitations 
of section 404(a) and to the extent allowed by section 873 or 882(c).

[T.D. 6500, 25 FR 11689, Nov. 26, 1960]