[srmcg]

Hi.

I am a permanent resident in the US for the past two years when I came over here from my home country.
I found out I have a pension from my employment back in my home country which stopped when I left that employment before coming to the US.
It is an employer group scheme and employer maintained.
(1) Am I correct in saying I therefore do not need to include this on the Fbar form?
(2) Do I need to do anything at all with regards this anywhere on my US tax return? There was no activity or anything done with it since I have left the company.

I received a letter last week saying that later this year this pension scheme is to be automatically transferred to a personal retirement bond in my home country. I don't need to do anything - it will just happen.
So I think this will then be an individual plan. The transfer to this type of plan with a different company is all that will happen and I can't go near it anyway until I am 65.
(3) When this gets transferred do I then need to add it to the FBAR form next year?
(4) Will I have to do anything else on the US tax return with regards this?

(5) Is a "foreign trust" another term that can describe "foreign pension"?
(6) Is this transfer to the new plan a "formation of a foreign trust"?
(7) Does Form 3520: "Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts" plus other forms need to be completed next year? - or is the FBAR the only thing I need to consider?

Also note: it will all be happening in that country and nothing will be transferred or dealt with from the US. Only US connection will be that I am a resident in the US.

(8) After the tax return for next year, would it just be the FBAR form I will need complete each subsequent year with regards this foreign pension?

As always I will greatly appreciate your advice on this.

[AtlantaTaxExpert]

HOW MUCH is the pension worth?

Further, when combined with all other financial accounts, what is the total value in aggregate?

[srmcg]

In US Dollars about $9350.
I know that doesn't necessarily kick in the FBAR but I do have other bank accounts there that are over $10k so I need to do the FBAR anyway.
It all adds up to about $30k and plus my wife we add up to about $40k (without the pension - I think she has an employer maintained one too but only worth about $1300) so don't reach threshold for the new form 8938 this year.

[AtlantaTaxExpert]

Given the sensitivity with the FBAR, I would report it on the FBAR form. Better safe than sorry!

[srmcg]

Thanks but I didn't report it on the form last year nor on my wife's one.
So should I not keep it consistent.

Or are you saying I should report it next year, as I outlined, when it changes to a individual plan later this year and not need to add the pension plan on this years?

Is the fbar the only thing I need to consider for this with regards the tax return?

[srmcg]

PS. As an employer maintained plan there is no account number associated with it. They said its just a plan name.
So I can't enter an account number in the "account number" field

When it changes to the new company and individual plan I expect there to be an account number set up then.

[AtlantaTaxExpert]

You can amend the past years' FBAR filings.

[srmcg]

Which I believe can open you up to a world of hell.
And for something that there seems a difference of opinion that should be on there or not in the first place.

[AtlantaTaxExpert]

MY way is the SAFE way. You are reporting information to the IRS that will sit on their database and probably NEVER be an issue tax-wise.

However, if you do NOT report it, and the IRS finds out and determines it SHOULD have been reported, you may then be subject to some pretty odious fines. Go to the IRS website and look up the fine schedule.