I am a German living in the US and want to wire about $100K into my bank account here in the US. But my case is a bit different from than what I find here in other posts. I terminated an investment life insurance early to pay debt over here. My annual contributions to the insurance were all made with after-tax money I earned here in the US and sent to Germany and some savings I still had in Germany. The life insurance was set up so that all capital gains are tax-free in Germany after 12 years of running as life insurance at which point the insurance becomes a retirement insurance. After now 20 years I terminated the insurance early and need the $$ over here. Am I correct in that I do not need to pay any taxes in the US? Is there any distinction between contributions vs capital gains? Also, I don't have a German bank account anymore and thought to have my dad wire me the $$. I read here that this may become an issue? Should I open my own account first in Germany for this transfer? In either case, what IRS forms would you recommend, if any?
Thank you so much for your help!
Best
Markus
