Simonyg

Hello all.

I am a UK citizen, living in he US as a resident alien on an L1 visa. My wife has a U.K. company money purchase pension plan from an old job from before we moved to the US. The plan was contributed to by my wife as the employee of a global company and her employer contributed double whatever she contributed.

This plan has had no contributions for a number of years and there has been no distributions.

I am clear that this does not need to be declared on an FBAR but not sure about any other reporting requirements for tax purposes, including form 8938. Is there a reporting requirement? If so, what do we need to do?

Any guidance you can provide would be appreciated.

Cook_County

This is question to ask of a lawyer who can instruct a CPA to represent you when you file amended US tax returns and FBARs.

Simonyg

Thanks fo the response.

I am definitely getting some legal advice on this. However, I am trying to educate myself as much as possible and the people on here are always helpful.

I'm sure there is someone on here who has been through the same situation.

Everything else is in hand and this is the only outstanding item.

nun

If this is a defined contribution plan it should be entered on FBAR and 8938. if you are over the thresholds.
A defined benefit or final salary plan would not be included in your FBAR accounts, but you'd probably be safest to include in in 8938 filings.

Simonyg

Nun,

Thanks for the response. Really appreciate all the info you have provided to me so far. Makes me feel a little less like I'm out on an island.

Simon

Cook_County

I'd suggest you read the US/UK tax treaty as well to decide what you want to disclose to the IRS.

Simonyg

Yes, I have read that and the technical explanation many times. I think it is pretty clear that I do not need to pay tax on anything as there is no contribution or distribution but I do need to declare it on form 8938.

Cook_County

It is interesting that you find the treaty "pretty clear", because that is not how most professionals view it. The words in any law are only ever "clear" after a Court (preferably a Supreme Court) has opined on their meaning.


One hopes you are also familiar with the Vienna Convention, so that you are "clear" on how to interpret treaties; as well as how to elect into a treaty, declare your position to the IRS, calculate income for the purposes of NIIT and (although not tax) report on FBARs.

Simonyg

Thanks.

I'm not saying the treaty is clear, I am saying the tax situation related to my wife's pension is pretty clear.

I am in no way trying to make any of this appear straight forward, easy or entirely clear. I simply responded to a comment. However, thanks for taking the opportunity to point out all of the additional complications.

All I am doing here is trying to educate myself and, so far, the people on this forum have been very helpful.