Pension/Trust
I have been researching into determining what is a foreign trust vs a pension from what I gather if you contribute more vs your employer it is considered a trust? I roughly have about $800-900 in my pension.
I had a foreign pension scheme (work pension) that I was auto-enrolled in via my UK employer. I believe I had 1% come out my check to go my employer pension plan, my employer was a common UK retailer, I can't touch or wirhsraw from it until I retire. Is 3250 required for me? When discussing with my wife her understanding was that if I contributed more to the pension scheme outside of the percentage that came out my (employer) pay check contributions this would make it a foreign trust? A bit like contributing a chunk to a 401k in addition to the % you have setup to deduct from your paycheck. Would this be correct? Nothing has went into my pension other than what came out my pay check I am trying to understand if my understanding of employer contributions is correct i.e the percentage that comes out your check and into the plan |
Re: Pension/Trust
Upon review of my pension scheme online my total employer contributions are higher than my employee contributions , with that being said with this not be considered a trust and a 3250 is not required?
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Re: Pension/Trust
'When discussing with my wife her understanding was that if I contributed more to the pension scheme outside of the percentage that came out my (employer) pay check contributions this would make it a foreign trust?'
You certainly seem to have many complex tax issues on your mind Dee:lol: (But it seems your tax situation is pretty simple from what you've posted previously?) Why is that her understanding specifically? Can you quote the IRS guidance? (How did the question even come up?) |
Re: Pension/Trust
Originally Posted by Hotscot
(Post 12664239)
'When discussing with my wife her understanding was that if I contributed more to the pension scheme outside of the percentage that came out my (employer) pay check contributions this would make it a foreign trust?'
Why is that her understanding specifically? Can you quote the IRS guidance? (How did the question even come up?) We were chatting about whether the 3250 applied to me as I am unsure, I'm not too great with pensions/taxes so I apologise if any of my questions come across as basic or stupid.This forum has been a huge help with any immigration or tax related questions, the assistance and advice from fellow expats has been immensely appreciated everyone on here has been fantastic! :thumbup: Would I be correct in saying from what I provided above my pension is not a trust as my employer contributions was greater than mine? |
Re: Pension/Trust
No need to apologize. Everyone can ask questions.
Why do you think it's a trust? Can you quote the IRS guidance that makes you, or your wife, think this? How did the question come up? |
Re: Pension/Trust
Originally Posted by Hotscot
(Post 12664249)
Why do you think it's a trust?
Can you quote the IRS guidance that makes you think this? I guess from what I noted it's not a trust then?, my employer matched my minimum % contributions and when I review my contributions vs my employer contributions their contribution was higher than mine. My situation is probably simple and I am over complicating things. Apologies again if my questions seem like rookie questions :blink: |
Re: Pension/Trust
No, don't apologize. Everyone has questions.
I just feel, from what you've provided so far, that you are overthinking, and that your personal tax situation is pretty straightforward. (And that you shouldn't go looking for potential niche issues that may or may not apply to you.) |
Re: Pension/Trust
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Re: Pension/Trust
I asked on another forum that was not BE I am unsure why you are referencing the post. I apologise if I did anything wrong I am seeking advice/help on the issue. |
Re: Pension/Trust
You're not doing anything wrong.
But how will you know you have a correct answer unless you engage a qualified professional? Your situation seems simple. Or are you asking for a 'friend'? |
Re: Pension/Trust
Originally Posted by Hotscot
(Post 12664366)
You're not doing anything wrong.
But how will you know you have a correct answer unless you engage a qualified professional? Your situation seems simple. Or are you asking for a 'friend'? That is true, can you provide any advice for my situation with regards to whether I do or do not have a trust. I am stressing over this and this is the last thing that I had a question about and then I was done believe it or not . I appreciate your input and also theOAP and cook_county, sorry for asking an abundance of questions taxes are not easy and it's alot to learn for someone new to it . Look forward to your reply Many Thanks Dee |
Re: Pension/Trust
Dee.
If you're stressing over this why do you think you have a trust? You need to provide more detail as to why. Nothing you've indicated suggests any complexity. Quote the IRS guidance please. (Are you a tax person trying to help a client?) |
Re: Pension/Trust
Originally Posted by Hotscot
(Post 12664382)
Dee.
If you're stressing over this why do you think you have a trust? You need to provide more detail as to why. Nothing you've indicated suggests any complexity. Quote the IRS guidance please. (Are you a tax person trying to help a client?) No I am not a tax person or have clients I'm trying to help :lol: |
Re: Pension/Trust
Understood Dee.
I personally don't think your accounts are complex. However the only real way to give specific advice is for you to list all your non-US accounts, their types, and their values. You seem to be stressing needlessly. |
Re: Pension/Trust
Originally Posted by Hotscot
(Post 12664397)
Understood Dee.
I personally don't think your accounts are complex. However the only real way to give specific advice is for you to list all your non-US accounts, their types, and their values. You seem to be stressing needlessly. |
Re: Pension/Trust
No pm's please.
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Re: Pension/Trust
Originally Posted by Hotscot
(Post 12664473)
No pm's please.
*UK employer work pension plan (defined contribution plan)/ dormant (under $900 / my employer contributions were higher than my contributions this was confirmed by viewing my pension online ) *UK bank account - (under $100, no interest) Last year I filed a FBAR as my bank account was a bit over the $10k I noted my pension on this as well. |
Re: Pension/Trust
It doesn't look like you have a trust. Unless I'm missing something.
Why are you stressed? It looks like you've nothing, non-US, to report. |
Re: Pension/Trust
Originally Posted by Hotscot
(Post 12664507)
It doesn't look like you have a trust. Unless I'm missing something.
Why are you stressed? It looks like you've nothing, non-US, to report. Apologies to any users I messaged asking for advice, US taxes are new to me and I want to ensure all is correct. Sorry to cook_county and theOAP for messaging for advice I view both of you as great experts with a wealth of knowledge and appreciate all the support you provide users on here. Lastly a big thank you to yourself hotscot for all the help you have provided it really is much appreciated I guess for clarity am I correct in saying my UK pension comes into play every year on a schedule B part3, on a FBAR and 8938 (when applicable) and most definitely when I retire and withdraw from it. With regards to my first year taxes (last year) any contributions made to my pension plan before I became a US resident/moved across the pond are not noted on taxes, is this correct?? |
Re: Pension/Trust
Originally Posted by dee98
(Post 12664519)
I guess for clarity am I correct in saying my UK pension comes into play every year on a schedule B part3, on a FBAR and 8938 (when applicable) and most definitely when I retire and withdraw from it.
With regards to my first year taxes (last year) any contributions made to my pension plan before I became a US resident/moved across the pond are not noted on taxes, is this correct?? Comes into play...not sure what you mean but I think you're not taking any income from it currently? If you're not I don't think you need to report it even if it's generating interest/dividends inside the pension wrapper. (Unless it reaches FBAR/FATCA thresholds.) Pension contributions not noted. |
Re: Pension/Trust
Originally Posted by Hotscot
(Post 12664556)
Comes into play...not sure what you mean but I think you're not taking any income from it currently? If you're not I don't think you need to report it even if it's generating interest/dividends inside the pension wrapper. (Unless it reaches FBAR/FATCA thresholds.)
Pension contributions not noted. On my year 1 taxes in reference to my pension I noted my pension on the FBAR I assume that was correct and all required for year one? Thank you once again mate! |
Re: Pension/Trust
FBAR and if you were a tax resident in Year 1 and if it reached the threshold, yes.
(I don't think you need to report on Schedule B until you actually take income from it.) |
Re: Pension/Trust
Originally Posted by Hotscot
(Post 12664561)
FBAR and if you were a tax resident in Year 1 and if it reached the threshold, yes.
(I don't think you need to report on Schedule B until you actually take income from it.) Yeah when I mentioned schedule B I meant I will always complete part 3 for foreign accounts since I have a bank account and pension and answer the Fbar question as it applies and no to the trust question since I do not have a trust. |
Re: Pension/Trust
It's nothing...:o
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