Forms 8938,1040: how to report my pension account from work?

[SaraR321]

Hello!

I am a green card holder but I live in Israel on permanent basis since 2021.

And every year I file tax return to stay compliant with IRS.

In 2024 I started working as a part-time employee

and according to the law of the State of Israel I started participation in my employer's pension plan( Clal pension and Gemel LTD, my share + my employer's share which is greater than mine).

I think I should to fill out parts II and part VI in form 8938.

Questions is :

- Should I use line 35 or 36 in part VI for pension plan?

- Which box do I check on lines 35a -35 e or 36a-36e.

-Do I have to submit also Form 3520 ?

- in 2024 I made contribution to my employers  pension account.  Do I need to check box [Received a distribution from, or was the grantor of, or transferor to, a foreign trust] in the section
[Foreign Accounts and Financial Assets] of Schedule B (Form 1040)?

Thanks.

[pk]

@SaraR321 

(a) Assuming that you are indeed a US person ( GreenCard ) for purposes of US tax filing,  

(b) that both the Clal and the Gemel are private  pension benefits / savings  schemes ( i.e. not equivalent to US Social Security  )

Yes you need to report these  ( year end value thereof ) in Part II of the form 8938 and then details thereof  in Part VI ( line 29 and follow-on  lines as applicable ).

I think it is line 36 that is applicable  since this is not a share   but an account and  it is a trust ( or behaving as a trust administering/managing an account  with contributions from you and your employer ) -- no different than  401/403 type of  retirement accounts in the US, except  under Israel laws/regs.

Does  this make sense ?   Is there more I can do for you ?

pk

[SaraR321]

pk,

First of all, thank you very much for your reply.
As for lines 35 or 36, I think line 35 is more suitable.
Line 35 is for stock in a foreign entity (not my case) or
an interest in a foreign entity (in my case it's interest in my employer's pension plan which is opened at CLAL insurance corp).
As for line 36, it's about issuer and counterparty.
Not sure how they're related to the pension plan.
What do you think?
Also, another question. Type of foreign entity, is it trust or corporation?

Thank you for you reply in advance.

[DaveF1006]

It depends. if your pension plan represents an interest in a foreign entity (rather than stock ownership), this line appears more aligned with your situation. Line 36 typically applies to relationships with issuers or counterparties in financial transactions, which might not directly apply to your pension plan setup. i would leave this blank if you are not sure. It's not critical in your report.

Regarding the type of foreign entity, it's important to determine whether CLAL Insurance Corp operates the pension plan as a trust or a corporation. Many pension plans are structured as trusts for legal and tax reasons, but corporate-backed plans can also exist. If CLAL holds and administers pension assets separately for beneficiaries, it may lean towards being a trust. However, if the pension plan is a direct corporate entity providing retirement benefits, it could be classified as a corporation. It is difficult to say at this juncture.

To be certain, you might check documentation from CLAL if documentation is available.

@SaraR321