Contact UsSelf-Employed Foreign Pension Plan (Australian Superannuation Fund) Reportable on FBAR?
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Dr. Daniel Erasmus
The ANSWER is not an easy YES YOU MUST FILE - This is what
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
31 CFR Part 1010
RIN 1506–AB08
Amendment to the Bank Secrecy Act
Regulations—Reports of Foreign
Financial Accounts
AGENCY: Financial Crimes Enforcement
Network (FinCEN), Treasury.
ACTION: Final rule
says, I quote:
"Participants and beneficiaries in
certain retirement plans. Participants
and beneficiaries in retirement plans
under sections 401(a), 403(a) or 403(b)
of the Internal Revenue Code as well as
owners and beneficiaries of individual
retirement accounts under section 408
of the Internal Revenue Code or Roth
IRAs under section 408A of the Internal
Revenue Code will not be required to
file an FBAR with respect to a foreign
financial account held by or on behalf
of the retirement plan or IRA.
FinCEN received one comment
proposing an across-the-board
exemption for all pension plan
participants and beneficiaries. The
commenter was concerned about the
filing obligations of participants and
beneficiaries of other types of plans not
covered by the exemption. In proposing
this exemption, FinCEN considered that
participants and beneficiaries of these
plans were less likely to be aware of the
existence of foreign financial accounts
because they were unlikely to exceed
the 50 percent ownership threshold.
Participants and beneficiaries that are
not covered by this exemption should
look to the 50 percent ownership indicia
to determine whether a filing obligation
exists."
Most of these 'individual retirement plans' like the retirement annuity funds in South Africa, are virtually identical to a pension plan where the participants (individuals) are like the employer contributors. No one person in these funds usually owns more than 50% of these 'foreign financial accounts' in these funds - so in my view no FBAR filing is necessary. Some may file anyway just to be safe.
For IRS guidance see - www.irs.gov/businesses/small/article/0,,id=148849,00.html
The FBAR must be received by the IRS on or before June 30 of the year following the calendar year being reported. File by mailing the FBAR to:
United States Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621.
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622 weeks ago
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
31 CFR Part 1010
RIN 1506–AB08
Amendment to the Bank Secrecy Act
Regulations—Reports of Foreign
Financial Accounts
AGENCY: Financial Crimes Enforcement
Network (FinCEN), Treasury.
ACTION: Final rule
says, I quote:
"Participants and beneficiaries in
certain retirement plans. Participants
and beneficiaries in retirement plans
under sections 401(a), 403(a) or 403(b)
of the Internal Revenue Code as well as
owners and beneficiaries of individual
retirement accounts under section 408
of the Internal Revenue Code or Roth
IRAs under section 408A of the Internal
Revenue Code will not be required to
file an FBAR with respect to a foreign
financial account held by or on behalf
of the retirement plan or IRA.
FinCEN received one comment
proposing an across-the-board
exemption for all pension plan
participants and beneficiaries. The
commenter was concerned about the
filing obligations of participants and
beneficiaries of other types of plans not
covered by the exemption. In proposing
this exemption, FinCEN considered that
participants and beneficiaries of these
plans were less likely to be aware of the
existence of foreign financial accounts
because they were unlikely to exceed
the 50 percent ownership threshold.
Participants and beneficiaries that are
not covered by this exemption should
look to the 50 percent ownership indicia
to determine whether a filing obligation
exists."
Most of these 'individual retirement plans' like the retirement annuity funds in South Africa, are virtually identical to a pension plan where the participants (individuals) are like the employer contributors. No one person in these funds usually owns more than 50% of these 'foreign financial accounts' in these funds - so in my view no FBAR filing is necessary. Some may file anyway just to be safe.
For IRS guidance see - www.irs.gov/businesses/small/article/0,,id=148849,00.html
The FBAR must be received by the IRS on or before June 30 of the year following the calendar year being reported. File by mailing the FBAR to:
United States Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621.