@SusanY1 @RobertB4444
I have Indian life insurance pension fund bought 20 years back , paid premium only beginning 5 years and it’s maturing next year.
I want to get rid of it so have options to encash the surrender value (grown 5 times) or postpone the maturity or convert to annuity that pays rest of life.
question if I surrender this pension fund is this classified as PFIC form 8621 and hence need to do 1291 excess distributions (highest taxable tax)
I assume pension funds are exempt from PFIC
if not then should I follow the same method above of reporting net of surrender cash value and USD converted premium as other income in 8938 and pay ordinary income tax?
