How do you treat a foreign company's pension builder for US tax purposes?
Hello, I appreciate all the clarifying answers I can get.
Back in 2000 I started contributing to a Foreign
Insurance Company to their so called Pension Builder.
This the Philamlife Insurance Company Pension Builder
in the Philippines. I was contributing about $600.00 (32k pesos)
yearly and after 10 years it reached maturity and I just
got my first distribution of $1100.00 (50k pesos) last year
Dec 2010. The account itself supposedly has a face value
of roughly $10k-11k (500k pesos).
Now how do I report the distribution in my 2010 Income tax.
1) Report the interest of $500 in schedule B?
2) Report this as Pension or Annuity Income?
The bottom line is I am not sure. I am also confused on
how to classify this type of Account, whether this
some sort of deferred annuity or just a high interest
savings account?
Thanks for all the help.
Comment on AtlantaTaxExpert's post
Thanks for the response. See my Answer below.