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Yet Another Pension thread about FBAR and other

Yet Another Pension thread about FBAR and other

Old Mar 5th 2020, 11:40 pm
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Question Yet Another Pension thread about FBAR and other

I spent the last few hours reading on this topic here. It is as clear as mud. I didn't find anyone with exact situation
if you can provide some direction, that would be great.

I am 45 old and moved from the UK to the USA 4 years ago. I have around 50K in UK pensions and no plans to return to the UK.
1) Last few years my tax consultant never advised on filling FBAR for this. I am planning to declare UK Pension this year. Will there be any issues? What's the right way to this?
2) How much tax I need to pay If I want to take the lump-sum option? First, is this possible? Few folks in this forum mentioned 25% and others mentioned 35%. If it is 25%, does it mean that I can draw 37.5K? What are the US & UK tax implications?
3) Is it advisable to draw my UK pension and pay towards the mortgage in the US?
3) Can you recommend any pension & tax expert?

Any advice or pointers greatly appreciated.
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Old Mar 6th 2020, 1:11 am
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Default Re: Yet Another Pension thread about FBAR and other

If you're 45 I believe that your UK pension savings are untouchable for the next ten years i.e. until you're 55, unless the pension resulted from work in one of the occupations that permit retirement at an earlier age, which includes many professional sports, but also certain high risk and arduous occupations, such as deep sea diving.
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Old Mar 6th 2020, 8:33 am
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Default Re: Yet Another Pension thread about FBAR and other

You would already have been reporting the pension plan(s) on Form 8938. Most UK pension plans are FBAR reportable. If these obligations were omitted, the SDOP is the cheapest way to deal with any omissions.
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Old Mar 6th 2020, 6:19 pm
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Default Re: Yet Another Pension thread about FBAR and other

Originally Posted by Cook_County View Post
You would already have been reporting the pension plan(s) on Form 8938. ....
If he's not been filing FBAR, why would you assume he's been filing Form 8938?

Perhaps you don't realize, but most of your terse posts might as well be in Greek. You never give any explanation or context, or guidance on how to complete the forms, you just fire off a few words, which are as likely as not of very little practical use to the person who asked the question!
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Old Mar 6th 2020, 6:40 pm
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Default Re: Yet Another Pension thread about FBAR and other

Originally Posted by SlashDevSlashNull View Post
I spent the last few hours reading on this topic here. It is as clear as mud. I didn't find anyone with exact situation
if you can provide some direction, that would be great.

I am 45 old and moved from the UK to the USA 4 years ago. I have around 50K in UK pensions and no plans to return to the UK.
1) Last few years my tax consultant never advised on filling FBAR for this. I am planning to declare UK Pension this year. Will there be any issues? What's the right way to this?
2) How much tax I need to pay If I want to take the lump-sum option? First, is this possible? Few folks in this forum mentioned 25% and others mentioned 35%. If it is 25%, does it mean that I can draw 37.5K? What are the US & UK tax implications?
3) Is it advisable to draw my UK pension and pay towards the mortgage in the US?
3) Can you recommend any pension & tax expert?

Any advice or pointers greatly appreciated.
If your tax returns are in order, the IRS has a procedure for the filing of delinquent FBARs without any risk of penalty: https://www.irs.gov/individuals/inte...ion-procedures
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Old Mar 6th 2020, 7:48 pm
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Default Re: Yet Another Pension thread about FBAR and other

"If he's not been filing FBAR, why would you assume he's been filing Form 8938?

Perhaps you don't realize, but most of your terse posts might as well be in Greek. You never give any explanation or context, or guidance on how to complete the forms, you just fire off a few words, which are as likely as not of very little practical use to the person who asked the question!"
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I agree. Frequently these posts appear to be designed to deliberately terrify the original OP and force them down the SDOP path which is expensive and inappropriate in most cases. Hopefully that is not the case, but that is how they come across.

Assuming there is no income from these pensions in prior tax years and therefore no delinquent tax, then I would simply file the delinquent FBARs for each of the missing years with a note that explains why you did not file them prior. The electronic FBAR system allows you to do this. If you have not filed Form 8938 (thats the one that you are supposed to file as part of your tax return) then I would modify the past 3 years tax returns to add those Forms (3 years is the most you can modify) and again provide an explanation. If you have only been here for 4 years then that will likely cover all of your tax returns anyway.

.Unless you have other tax issues, it is unlikely you will ever hear back from the IRS and you can move on with your life. The FBAR and Form 8938 are not hard to fill in, if you pay attention to the instructions and detail. It is a tedious task, but very doable, and many of us have done so without paying an expensive professional international “expert". If you need help refilling your back taxes then a regular tax preparer should be able to assist with that, if you provide the data required for Form 8938.
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Old Mar 7th 2020, 4:19 pm
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Default Re: Yet Another Pension thread about FBAR and other

Originally Posted by Pulaski View Post
If he's not been filing FBAR, why would you assume he's been filing Form 8938?

Perhaps you don't realize, but most of your terse posts might as well be in Greek. You never give any explanation or context, or guidance on how to complete the forms, you just fire off a few words, which are as likely as not of very little practical use to the person who asked the question!
I suspect he/she does realise that. But, there’s a lot of weird shit in BE.
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Old Mar 7th 2020, 4:59 pm
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Default Re: Yet Another Pension thread about FBAR and other

Originally Posted by robin1234 View Post
I suspect he/she does realise that. But, there’s a lot of weird $4!t in BE.
And a few trolls.
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Old Mar 7th 2020, 5:59 pm
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Default Re: Yet Another Pension thread about FBAR and other

Originally Posted by Pulaski View Post
And a few trolls.
Them too...
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Old Mar 9th 2020, 1:17 am
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Thumbs up Re: Yet Another Pension thread about FBAR and other

Thanks for all your helpful pointers.
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Old Mar 26th 2020, 4:18 am
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Default Re: Yet Another Pension thread about FBAR and other

Originally Posted by Glasgow Girl View Post
...

Assuming there is no income from these pensions in prior tax years and therefore no delinquent tax, then ...
In the US, if you have money in a tax-sheltered retirement ('pension') account, like a conventional IRA or 401K, you don't have to worry about any tax consequences of any gains the funds within the account make; it's only when you withdraw that you have to do that. But if you have money in a UK pension, do those same rules apply (when filing your US tax return)? When you say 'no income', I presume that means 'no withdrawals', and not 'no gains'. I thought I'd read somewhere that UK pension plans were not subject to the same exceptions as 401k's and IRAs. Just curious.
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Old Mar 26th 2020, 8:22 am
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Default Re: Yet Another Pension thread about FBAR and other

Originally Posted by Steerpike View Post
In the US, if you have money in a tax-sheltered retirement ('pension') account, like a conventional IRA or 401K, you don't have to worry about any tax consequences of any gains the funds within the account make; it's only when you withdraw that you have to do that. But if you have money in a UK pension, do those same rules apply (when filing your US tax return)? When you say 'no income', I presume that means 'no withdrawals', and not 'no gains'. I thought I'd read somewhere that UK pension plans were not subject to the same exceptions as 401k's and IRAs. Just curious.
UK pension plans such as a SIPP or employer defined contribution plan are treated similar to a 401k or IRA in that the gains are not taxable. Only on withdrawal are they taxed by the IRS. The balance of the pension plans are reportable following the rules of FBAR and the IRS form 8938.
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Old Apr 2nd 2020, 12:33 am
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Default Re: Yet Another Pension thread about FBAR and other

Greetings all!

I thought I'd reply on this topic as it is somewhat relevant I was doing a bit of research, I am US based but have an old UK workplace pension that has a small amount and a UK bank account the combined amount of the two accounts is probably under $6k. I don't own any property or have any other financial accounts etc other than those two.

From what I read on here I would report both on the FBAR if the max values of each account throughout the year when combined exceeded $10k? There was another form 8938 but I believe you report that if the value of the accounts exceeded $50k at any time during the year or $100k if married filing jointly?

Does that sound right that those two would apply only when the filing values for each type are met?
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Old Apr 2nd 2020, 12:48 pm
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Default Re: Yet Another Pension thread about FBAR and other

Originally Posted by mv72 View Post
Greetings all!

I thought I'd reply on this topic as it is somewhat relevant I was doing a bit of research, I am US based but have an old UK workplace pension that has a small amount and a UK bank account the combined amount of the two accounts is probably under $6k. I don't own any property or have any other financial accounts etc other than those two.

From what I read on here I would report both on the FBAR if the max values of each account throughout the year when combined exceeded $10k? There was another form 8938 but I believe you report that if the value of the accounts exceeded $50k at any time during the year or $100k if married filing jointly?

Does that sound right that those two would apply only when the filing values for each type are met?
Sounds like you have it right.
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Old Apr 2nd 2020, 10:22 pm
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Default Re: Yet Another Pension thread about FBAR and other

Originally Posted by durham_lad View Post
Sounds like you have it right.
Thanks, I re-read the 8938 again and actually when married filing jointly and residing in the US that it is greater than $150k at anytime or $100k on the last day.

I guess with no deposits or activity in my dormant accounts that I don't need to file these until I meet the $10k fbar or $100/150k 8938 filing values.
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