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Tax Help (stressed out)

Tax Help (stressed out)

Old Apr 7th 2019, 11:23 pm
  #31  
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Default Re: Tax Help (stressed out)

Do you have an account number for the pension? I don't mean a member number but a number that allows you to go check the value at anytime.
Do you receive statements on the specific value of your pension and any dividends that accrue as though it was a bank investment account?

If you say yes to these specifics there may be a case for reporting.
Otherwise I wouldn't. (My opinion.)

For example I have an old university pension. I have no idea of the value and no regular easy way of finding out. Certainly no account number.
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Old Apr 8th 2019, 12:03 am
  #32  
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Default Re: Tax Help (stressed out)

I created a login recently to be able to view my pension online, I have a policy number. I can view the transactions of the account and the fund value as it stands currently.
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Old Apr 8th 2019, 12:15 am
  #33  
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Default Re: Tax Help (stressed out)

But can you yourself make changes in how the funds are used?
I suspect you do not have signature authority.
And you have no access to the funds until you retire, even if you had them moved to another plan?

In any case, here's what I believe. (And don't worry about the 'trust' label. It's not the kind of trust you think)
Your 'foreign' pension is treated similar to that of an IRS-qualified US retirement plan and taxation is deferred to when you collect payments. (If you're a US tax resident.)
I believe the UK/US tax treaty spares you from having to report contributions and investment growth.
I wouldn't be concerned about reporting until you take distributions and/or it hits the FBAR/FATCA threshold.


Last edited by Hotscot; Apr 8th 2019 at 12:40 am.
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Old Apr 8th 2019, 12:37 am
  #34  
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Default Re: Tax Help (stressed out)

When I click on the pension plan it states

Your plan includes the (product name) investment programme. Lifetime investment programmes are designed to manage your pension investments for the life of the pension plan.

Below you will see your fund holdings in whole percentages?

You can switch existing holdings into other funds. This will not alter the investment of future contributions or any existing holdings managed by your investment programme. Please note all of the funds are being managed by the investment programme. You can switch your holdings into other funds. However, you will first need to remove your investment programme.

I left the plan before I moved to the US and received a letter saying I left it states I can wait until I retire to receive funds or move UK funds to another pension. I don't know about the signature authority part I am afraid .

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Old Apr 8th 2019, 1:13 am
  #35  
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Default Re: Tax Help (stressed out)

Originally Posted by Hotscot View Post
But can you yourself make changes in how the funds are used?
I suspect you do not have signature authority.
And you have no access to the funds until you retire, even if you had them moved to another plan?
Yes that's right, the only time I will see the funds is when I retire.
In any case, here's what I believe. (And don't worry about the 'trust' label. It's not the kind of trust you think)

Yes when I think of trust I think of "trust fund" not an employer pension plan from Tesco (for example). Though I was reading about the term employee trusts on this website below which made me think it may be, what are your thoughts?

https://www.irsmedic.com/blog/2015/0...n-taxable.html​​​​​​
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Old Apr 8th 2019, 1:45 am
  #36  
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Default Re: Tax Help (stressed out)

Originally Posted by dee98 View Post

I actually read that earlier. You're plan doesn't fit a 'trust' in this manner.
In any case, in my opinion, you're good to go.
I wouldn't even report the pension unless/until FBAR/FATCA came into play.
I report a Nationwide Building Society slush fund but that's because I can access the money and I'm in charge of it.

I say you can rest easy on this matter Dee.

Last edited by Hotscot; Apr 8th 2019 at 1:50 am.
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Old Apr 8th 2019, 2:00 am
  #37  
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Default Re: Tax Help (stressed out)

Originally Posted by Hotscot View Post
I actually read that earlier. You're plan doesn't fit a 'trust' in this manner.
In what way does it not fit I am just curious.

In any case, in my opinion, you're good to go.
I wouldn't even report the pension unless/until FBAR/FATCA came into play.
I report a Nationwide Building Society slush fund but that's because I can access the money and I'm in charge of it.
I see, I assume when you say you are in charge you can withdraw from it too.
I say you can rest easy on this matter Dee.
I found this great article from Deloitte below that talks about trusts, it talks of a foreign non grantor trust and only mentions 3520 when taking a distribution? Could this be what all UK pensions are?


https://www.google.com/url?sa=t&sour...13FKsN5FrVKKwT
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Old Apr 8th 2019, 2:19 am
  #38  
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Default Re: Tax Help (stressed out)

I read through a bunch of articles on trusts today and it seems yours doesn't fit the requirements.
I believe Form 3520 only if it is treated as a trust for US tax purposes.
I'm not lucky enough to be drawing on my pension yet but I think it just gets reported as normal income. Line 16 on the 1040 I think..

Anyway off for my G&T.
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Old Apr 8th 2019, 2:39 am
  #39  
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Default Re: Tax Help (stressed out)

Originally Posted by Hotscot View Post
I read through a bunch of articles on trusts today and it seems yours doesn't fit the requirements.
Gotcha, was there anything specific that made it not count?
I believe Form 3520 only if it is treated as a trust for US tax purposes.
When you say that do you mean I should be using this form every year or only when I take a distribution from it or none at all?
I'm not lucky enough to be drawing on my pension yet but I think it just gets reported as normal income. Line 16 on the 1040 I think..

Anyway off for my G&T
.
Enjoy the G&T mate!


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Old Apr 8th 2019, 2:59 am
  #40  
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Default Re: Tax Help (stressed out)

What happened? I'm curious...
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Old Apr 8th 2019, 3:06 am
  #41  
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Default Re: Tax Help (stressed out)

Originally Posted by Hotscot View Post
What happened? I'm curious...
You’ve had too many G&Ts.
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Old Apr 8th 2019, 3:11 am
  #42  
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Default Re: Tax Help (stressed out)

Originally Posted by Hotscot View Post
What happened? I'm curious...
I was in the midst of editing a post that looked bare.
Originally Posted by Jerseygirl View Post
You’ve had too many G&Ts.
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Old Apr 8th 2019, 3:52 am
  #43  
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Default Re: Tax Help (stressed out)

Originally Posted by Jerseygirl View Post
You’ve had too many G&Ts.
I just switched to Bourbon...

Anyway. Dee...that was actually a good topic to bring up.
It's helpful to the knowledge base and I found it very interesting to research
Not a tax pro so someone may come along and have a different view. However a lot of this stuff is actually not set in stone as I indicated earlier.

I'm done with it now. No more for me. Life's too short.

All the best and I hope you can help others here at some point.
Join in the Trailer Park and talk whatever rubbish you want...
Cheers!
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Old Apr 8th 2019, 4:12 am
  #44  
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Default Re: Tax Help (stressed out)

Cheers Hotscot,

I am going to see a CPA tomorrow for advice I am sure it will cost a fortune though I want to ensure all is correct.

When you mentioned my plan didn't fit the articles you read relating to a trust I was curious what about it specifically that did not apply so I can mention these points to the CPA in discussion??

Im sure I'll be posting randomly in the trailer park once I got all this sorted out. Found a brilliant site to get British foods on there ...once this is all settled I'll be making an order or Jammy Dodgers, Jaffa Cakes and Hobnobs!

Thanks again mate

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Old Apr 8th 2019, 5:34 am
  #45  
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Default Re: Tax Help (stressed out)

Originally Posted by dee98 View Post

When you mentioned my plan didn't fit the articles you read relating to a trust I was curious what about it specifically that did not apply so I can mention these points to the CPA in discussion??

You didn't contribute more than your employer.
You're not a high value executive.

And in answer to an earlier question...yes..many UK occupational pensions are set up like 'trusts'.
But not in the eyes of the IRS.

Any more questions on this please PM your credit card details.
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