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 of reporting net of surrender cash value and USD converted premium as other income in 8938 and pay ordinary income tax?
