Otto The Squid

I doubt that you will find a better Sipp than AJBell, even if UK resident.

MidAtlantic

Thanks for this helpful information. I have been looking to bring three different bits of UK pension together in one place and it looks like this might be a good option.

plowe2

Hi
Has anyone seen this :-


Cumulative List Of Non Us Pension Funds Exempted By Fatca Intergovernmental Agreements Igas
(http://www.groom.com/media/publicati...a_03272015.pdf )

Is this bogus or for real ?
Thanks

Owen778

I believe it's real, yes. However, as I understand it, the list just means that they don't have to be reported by the financial institution, because they are considered low enough risk for money laundering. If they are required to be listed on a personal FATCA or FBAR form, they still have to be included.

plowe2

Hi,
wow - so that means personal FBARs must include all pensions no matter what type ?
txs

MidAtlantic

IGAs, (this link relates to the US/Australia IGA - others may be different) informs the financial institutions what they may or may not have to report.

What we have to report as taxpayers is quite separate. Whether a pension is reported on FBAR depends on the type of pension. Do you have signature authority? On my UK SIPP I do, therefore I report it. For my final salary scheme there is no account in my name, I have no signature authority and I have no control over the investments so I do not report that on my FBAR.

For 8938 the answers are different again!

mrken30

I am assuming a final salary scheme is not treated like a trust where you could be a beneficiary but not have signature authority.

Cook_County

I think that a final salary pension scheme is most probably a non-exempt employer sponsored trust. However, Internal Revenue Code section 402(b)(3) exempts most such trusts from the most pesky kinds of annual foreign trust reporting.

Owen778

No, not quite.

A foreign financial account that is held by a government entity is not required to be reported. So, the UK state pension doesn't need to go on the FBAR (but does need to go on your tax return if you're taking it), potentially civil service pensions may be similar. All other pensions are reportable for FBAR.

Or not. Possibly MidAtlantic is correct, it's been a while since I looked into this, and for the last couple of years, I've just updated the values on my FBAR and 8938.

mrken30

You do need to report NS&I accounts and LLoyds TSB (80% Governement owned)

plowe2

Re IRS & UK pensions , just talked to a tax attorney and they stated that not only should pensions be reported on FBARS, BUT if the pension value went up say from 2013 ( 50,000 ) to 2014 ( 60,000 ) , then the 10,000 income should be reported on the regular 1040 as income. This is the very first I have heard this. Can someone comment on this please ? Thanks.

Pulaski

That is incorrect, bona fide pension funds are protected under the tax treaty. By way of contrast, ISAs are not protected and ISA gains and income are taxable in the US.

plowe2

Hi Pulaski,
Txs for the reply. It's not an ISA but what Re-Assure company calls a 'personal pension plan' to which I had no access until 2015 as the realization date was retirement age of 66 until the UK laws changed on this. txs

Pulaski

I only mentioned the ISA as an example of a fund that is tax-free in the UK, but is not protected by the tax treaty.

A personal pension plan is protected under the treaty - tell the tax attorney that it is a "British 401k", as the two things are functionally identical - it sounds like he thinks a personal pension is some sort of personal trust or investment fund, which would be taxable.

plowe2

Hi,
It's actually an old plan from the 80s called a personal pension plan (retirement annuity contract) section 226 - self employed to complicate matters. txs