Possibility of filing Form 3520 for Foreign Pension?

[HarishKumar7]

Hi, My wife has an account with National Pension Systems (NPS) in India through her ex-employer in India. We moved to the United States 4 years ago and she has not been contributing anything to the NPS account and neither getting any income or distributions from that account. We have been reporting the NPS in Form 8938 and FBAR but i wanted to check if we also need to file Form 3520 and/or Form 3520A regarding the NPS account? Could you pls advise? Thanks 

[pk]

@HarishKumar7 , Namaste ji

Please these instructions for the form 3520 below:

Instructions for Form 3520 (Rev. December 2023)

While the particular scheme is not mentioned as one of the "exceptions " to filing requirement ( similar Canadian plans are  ),  I do not believe  you have to report this  on form 3520.  However, when you do contribute and/or get a distribution, you may have to.

My opinion is that since you are reporting FBAR and the FATCA ( form 8938 ) , you are doing the needful  -- filing of 3520 would be duplicative.

If, however, you had a private   foreign trust  ( grantor or otherwise ) , that you owned. contributed to or received distribution from-- yes you would need to report that.

Is there more I can do for you ?

Namaste ji

pk

[HarishKumar7]

Thanks! Did you mean you believe I don’t have to file form 3520 as it will be duplicative of my disclosures in 8938 and FBAR? Want to make sure I interpreted your comment correctly. 

[pk]

@HarishKumar7 , that is correct -- I do not believe you have to file the form now.  But when you get a distribution you have to recognize  the  gain ( assuming  you have record of the contributions over the years ).  And obviously India may also tax the distribution  ( at least the gain )

Namaste ji