DaveF1006
Expert Alumni

Get your taxes done using TurboTax

No, unrealized gains are not reported on your 1040 tax return thus are not taxable to you. In addressing your other questions:

 

  1. Your pension should be reported on a 8938 if the value of the account is $50,000 on the last day of the filing year or if the balance of your pension exceeds $75,000 at any time during the year. ($!00,000 or $150,000 if married Filing jointly).
  2. You would need to file a 3520 if the foreign account is placed in a trust.  If you are not sure if it is a trust or not, it's best to report it just in case. A 3520 form is not supported by Turbo Tax.  Here is a form you can download here. This form can be filled out and mailed separately to the IRS. It can't be electronically filed. Here is the address to send this to: The form should be printed, signed, and mailed to:

Internal Revenue Service

P.O. Box 409101

Odgen, UT 84409

 

One last thing, there may be an FBAR reporting requirement. According to the CPA Journal, A foreign retirement plan is reportable on an FBAR if it is associated with a segregated foreign retirement account, since it is the foreign account—not the plan itself—that triggers the obligation to file the FBAR. A segregated account is a type of account where a company holds its clients' money separately from its own fund. 

 

Neither a foreign employer-created pension (which involves only a right to receive payments on retirement) nor a foreign equivalent of Social Security would qualify for reporting on an FBAR, however, as there is no foreign account to report in those situations.

 

If your retirement account is not a foreign employer created plan and if the value of the fund exceeds $10,000 at any time during the year, you will need to file an FBAR.. You may file this here

 

 

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