Foreign pension

[fnm500]

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

[ThomasM125 · Accepted solution]

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.

[MCTaxFan291]

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

[Critter-3]

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.