Foreign pension

Hi all,

I have 4 mutual funds in a foreign pension equivalent to the 401k of that country (I was working abroad).

I am not going to be able to access this pension for another 20 years.

I know I have to report this in FATCA form 8938.

But if the mutual fund generates dividends (which are re-invested) and I am not actually withdrawing the dividends as income, do I still need to report them in the income section?

I would think not, because the dividends generated in a 401k are not taxable..but just wanted to confirm.

Thank you

1268

Expert Alumni

May 16, 2021 5:18:04 PM

Yes, you are correct, the only thing you have to enter on your tax return is distributions, the income earned within the fund is not taxable.

Returning Member

May 23, 2021 7:48:01 PM

Where do you enter the foreign pensions distribution for 2020 federal tax in Turbo Tax? Thanks.

Level 15

May 25, 2021 5:52:08 AM

If this is for a Canadian pension then look for that in the Retirement section under Wages & Income tab.

Otherwise ...

You can report it as other income on Sch 1 line 8. Here's how to enter it in TurboTax.

Click the Federal Taxes tab ( Personal in the Home & Business version)
Click Wages & Income. (Personal income in the H & B version)
On the screen "Your 2020 Income Summary," scroll all the way down to the last section, "Less Common Income."
Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."
On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."
The next screen asks, "Did you receive any other taxable income." Click Yes.
On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.
On the next screen click Done.

The income will be reported on Sch 1 line 8 with the description that you entered.

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Foreign pension