It depends. Foreign retirement, pension, and savings accounts (including Canadian TFSAs and RCAs) are within the category of foreign trusts that are subject to Form 3520/Form 3520-A filing and therefore are subject to penalties for failure to timely file.
You may need to complete Form 3520 if you have the following:
- You are the responsible party for reporting a reportable event that occurred during the current tax year, or you are a U.S. person who transferred property (including cash) to a related foreign trust (or a person related to the trust) in exchange for an obligation or you hold a qualified obligation from that trust that is currently outstanding.
- You are a U.S. person who, during the current tax year, is treated as the owner of any part of the assets of a foreign trust under the rules of sections 671 through 679
- Your aggregate gifts were more than $100,000
There are two main categories of trusts:
- Grantor trusts: The grantor is taxed on the income
- Non-grantor trusts: The initial grantor or settler is not considered the owner of the trust and therefore is not subject to US tax on the income.
@bogao3037
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
