Foreign Retirement Account Reporting

kgraghu

In 2025, my son went to a foreign country for an internship in an MNC. The company opened a retirement account in that foreign country, and the account have $1,000 as of December 2025.

My understanding is that he should file Form 8938 if it is more than $50,000 or declare distribution amount in Form 1040 if he gets any distribution during 2025. Both didn't happen, I believe no action required from his end.

Am I correct? or does he need to file any other forms? Thanks!

MinhT1

There is no need for your son to file form 8938 or a FBAR, due to the balance of the account being below the reporting thresholds.

If he has foreign earned income, he can report it on form 2555.

See this TurboTax Help article for more information.

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kgraghu

Thank you very much for your quick response.

Yes, he has Foreign Earned Income, but I believe Form 2555 is required only if he wants to apply for Foreign Earned Income Exclusion. Since he lived there for only few months (not 330 full days in a 12‑month period), he may not be eligible for the exclusion. Does he still need to file Form 2555? Thanks!

DaveF1006

No, he does not to file Form 2555 since he is ineligible to exclude his foreign income.

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Foreign Retirement Account Reporting

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