PK:
I am so grateful for your taking time reading and answering my questions.
Your reply answered this specific question, clearly. However my bigger questions/concerns are related to Singapore CPF.
I did not report my CPF account because I was told twice by CPAs in previous years that the CPF was not FBAR reportable. But last year it was raised by another CPA saying reportable. In searching this forum I found one Singaporean having the same issues, first believed reportable then convinced not reportable because CPF is a government managed retirement plan.
I am still confused about this but want to play safe, by going through the FBAR Streamlined procedure to correct noncompliance for a lower penalty.
The life insurance part surfaced during my thorough review on Singapore assets, so it is part of "aggregated" accounts value. It itself may not meet the 8938 threshold but if CFP (~150k) is reportable the total value is definitely over the threshold.
The title question was part of the preparation for the streamlined procedure, as it requires 3 years 1040X with made-up interest incomes from unreported accounts. While CPF statements stated the saving interest rate, the life insurance statement did not. So which part in the life insurance account is taxable became a question.
Maybe my understanding of "interest over a financial account" was totally wrong. Is the "interest" here more like a right or privilege rather and the "interest" as in bank savings? If this is the case, my interest over life assurance accounts is the right or command on the growing funds as whole, but not the grown value itself.
Your comments and clarifications are highly appreciated.
Thanks again.
