littleredwood

I'm a UK citizen, permanent resident of the U.S. and living in the U.S. since 2010.

I have a personal pension plan that I contributed to in the UK, but haven't touched since I left. I'm not retired, so don't receive any distributions.

It's worth a tiny amount (≈$15,000) and I've been been declaring it on FBAR and 8938 (when other things pushed me over the limit.) But, after poking around the internet got scared about 8833, 3520, 3520-A, income tax, etc.

There are lots of useful threads on this board, but they're all closed now, so I've started a new one.

My situation seems very much like kodokan's (whom I can't private message, as I haven't made three posts to the forum yet!)

Like her situation, I have a stakeholder SERPS-opt-out-funded pension, invested in a unit trust. There are no reported dividends or reinvested profits, just an annual statement showing gains on the units and what it might pay out when I retire.

So:

—I haven't been reporting any income on my 1040, as I assumed there was none.
—Haven't filed any tax-treaty claim forms (8833)
—Haven't filed any "grantor trust" forms (3520, 3520-A)
—Have filed FBAR and 8938 when over the limits

I'm generally on the side of kodokan's "do what's reasonable" approach, but kodokan, I'd love to know what you ended up doing, as your posts are all from a couple of years ago.

Thanks!

Cook_County

And you have not even mentioned Form 8960 as the NIIT may also be chargeable on income within the plan.

littleredwood

I'm well below the threshold of 8960.

JAJ

"May also be".

Of course.

Or more likely, probably not. In reality.

JAJ

It sounds like you are doing exactly what you should be doing. Perhaps consider ignoring the scaremongering on forums.

littleredwood

Thanks for your thoughts!

nun

You are doing the right things already, just keep filing the informational forms. In the case of pensions the there is not a need to actively claim treaty exemption from US taxation on gains within the pension, so no need to file 8833. The foreign trust stuff is also only for the paranoid.

If you are still a US tax payer when you start taking income from the pension that will have to be reported on your US taxes.