@FrenchBaguette , generally agreeing with my colleague @Opus 17 on the subject of foreign pensions/ social security etc., Assurance Vie presents ( an investment vehicle wrapped by a life insurance, like a ULIP) a different issue. Even though its distributions are generally post retirement age, is France tax advantaged like US 401(k)s, from IRS perspective it is treated as a PFIC ( Passive Foreign Investment Company). Thus you would have to recognize the investment/saving through filing a form 8621 -- unless of course you can fall into one of the exceptions -- e.g. your investment is < US$25,000. The PFIC regime is quite painful and needs to be followed up every year ( i.e. report every year ). My strong suggestion would be to --- (a) seek tax attorney/ professional help -- someone who is familiar with PFIC regime; (b) use Mark-to-Market to recognize and pay taxes on yearly earnings ( deemed distributions ) --- note this "deemed excess distribution may require to be allocated over the whole holding period; and (c) if your long term goal is to stay in the USA, divest --I say this because in addition to US tax issues there is also, as I understand from literature/ commentary, the tax benefits in France at distribution are available ONLY to residents of France.
There are ways around this regime but these are quite iffy, IMHO.
My knowledge of PFIC is limited and I generally rely on text of sections 1297 and 1298 plus refs there ion. I have not looked into tax court case law.
Is there more I can do for you ?
