How do I report Singapore Central provide fund (retirement acct) closure/withdrawl on US Taxes? The money was contributed several years ago prior to moving to US.

[vmorishetty]

https://www.cpf.gov.sg/member/account-services/account-closure/closing-your-account-when-you-leave-s...

[pk]

@vmorishetty ,  since there is no Tax Treaty between US and Singapore, 

(a) are you a US person ( citizen/GreenCard) ?  

(b) From your post it seems you are no longer a Singapore  resident or citizen ?

Generally,  

(a) when there is no distribution, you will still come under  FBAR  ( form 114 , on line at FinCen.gov ) and   FATCA  ( form 8938 along with your  yearly return ).   See  here for details :

Comparison of Form 8938 and FBAR requirements | Internal Revenue Service

(b) Post distribution , you have to treat this income  just like an annuity / pension ( non-qualified  ) i.e. it is all taxable  income for US purposes.

(c) If Singapore taxes  this income/ distribution,  that tax is not eligible  for Foreign Tax credit / deduction because there is no tax treaty in effect.

Is there more I can do for you ?

[vmorishetty]

Thank you Pk.  I am no longer Singapore PR  and the contributions are made several years ago prior to taking up US Citizenship. Last year, I have closed the Singapore CPF account and took the distributions.

What forms should I submit to report the distributions? 

[pk]

@vmorishetty , Namaste ji

You should be reporting this  distribution on a form 1099-R  ( pension benefits ).  Box 1 and Box 2a should show the same -- total amount of distribution  i.e. all is taxable.  Box 7 code  should be 7  ( normal distribution ). 

If you want to be more of a challenger , you can   try with  Box 2a blank, and check Box 2b and Box 2c.  This will lead TurboTax to ask questions and allow you to provide information on your  total contribution to the plan  (  assuming that this amount was  after tax monies that you put into the account ).  Thus the  taxable amount would be your employer's contribution and  any growth  of  contributions.  However, you then have the burden of proving   that your contribution total was  with after tax  income.  This should be more tax beneficial  but obviously more challenging to prove.

Is there more I can do for you ?

[vmorishetty]

Thank you. Since this is a distribution for foreign trust. Do I need to file the form 3520? 

[pk]

@vmorishetty , Because you are  recognizing and paying taxes on the distribution, it is probably not essential to  file a 3520  ( original purpose  being to collect info on offshore & possible hidden assets ).  But I see no harm in filing the form anyways.  What I don't know is  if the filing of 3520 would  stop e-filing of the return  ( a lot of these un-common forms seems to preclude  e-filing ).

Is there more I can do for you ?

pk

[Lee-Ng]

Hi PK,

I have the similar situation and the contribution had some tax relief (tax deductible) but I didn't know how much because it was contributed in 1998 and before. The computation was not straight forward and make it challenging because I can't remember the salary and I didn't keep the pay slip. In addition, I didn't keep a copy of the income tax I filed in Singapore.

Here is the link for your reference: https://www.iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/tax-reliefs-reba... 

[pk]

@Lee-Ng ,  I need to understand your situation a bit better before venturing into commenting.

(a) When did you become a US person ( Citizen/GreenCard ) ?

(b) Are you in the US currently or still abroad ?

(c)  If you have been and still abroad, what is different for 2024, other than perhaps closing  you CPF account and  having a distribution that may be taxable in the US ?  I am asking this because  in general  for persons away from the US the filing date is 06/15  -- however the  pay date is still 04/15.

(c)  I am a volunteer  and generally cannot  (and should not ) be privy to your private/ personal information  (  e.g.  your tax return ).   This is mostly because  I have no  financial or  employer/employee or other relationship  with TurboTax.

(d)  There is still time to  take required actions  -- I understand your anxiety   and will do my best to alleviate the situation.

Please answer my questions and I will do my best to help you  --yes ?     You can also PM me and  I will come right back  -- we are probably 14 hrs.

 difference ( if you are in Malayasia ( I am in California)

pk

[Lee-Ng]

Hi PK,

Good morning. Thank you for your reply.

Regards,

lee

[pk]

@Lee-Ng    PM is  the little envelope that you see at the top right ( when in the community ).    Give me a day to come back on your post in the community .