[itsfighter]

I am planning for an investment in a life insurance pension plan. I have some questions of how this affects my FBAR threshold every year and my Tax reporting.

Quick info on the policy: In the plan/policy I selected I will be paying an insurance premium for 7 years and the plan will mature in 15 years. I have an option to either get a lump sum or opt for a yearly pension at the end of 15 years. This policy has a guaranteed surrender value for every year but I will not be getting any income or any payouts until 15 years.


1) For my FBAR threshold calculation should I include the Guaranteed surrender value for that particular year and determine whether I exceeded 10K for that year to report?
2) Since I am not getting any income/payout until 15 years (Plan maturity) do I have to report anything on my taxes?
3) At the end of 15 years if I get the lump sum matured amount or opt for yearly pension - How and where do I report that in my taxes? Do I have to report the matured amount less any premium paid? Is this reported in 1099int or any other section?
4) I am planning to put my wife has nominee or beneficiary for this policy. I believe nominee doesn't have any signature authority on this policy except they get the benefit in case of primary plan holder death. Does nominee on this policy affects my wife's FBAR threshold?
5) We are married filing jointly. How this policy affects form 8938 reporting threshold?


This is my first investment in life insurance plan and not sure how it affects income tax and fbar reporting. Thanks in advance for your time and answers.

[AtlantaTaxExpert]

1) Yes

2) No

3) If you are receiving an annual pension, part of it will be taxable, probably as "other income" on Line #21 of Form 1040, though it MAY be considered a pension distribution.

4) No, because she has NO signatory privilege.

5) Yes