Canadian RESP RRSP TFSA in self managed broker accounts

[bogao3037]

 I am Canadian and working in US with a TN visa.

I have a RESP, RRSP and TFSA.  All three accounts are in TD Direct Investing https://webbroker.td.com/ and managed by myself(I have some individual stocks and ETFs in each of above accounts). 

I conducted some research online.  Form 8938 is certainly needed to fill for each of RESP, RRSP, TFSA.  But are Form 3520(Report Transactions With
Foreign Trusts and Receipt of Certain Foreign Gifts) and Form 3520A needed also?   Also should all above accounts be treated as deposit account in TurboTax(TurboTax has depository or custodial accounts to choose under foreign financial accounts)?  What is the difference between foreign financial accounts and foreign financial asset?

The links I found out useful

https://www.expattaxonline.com/do-i-need-to-file-irs-forms-3520-and-3520-a-for-my-tfsa-and-resp/

https://ttlc.intuit.com/community/taxes/discussion/where-to-enter-canadian-tfsa-rrsp-rpp-investment-...

Any reply is appreciated.

[DaveF1006 · Accepted solution]

It depends because foreign specified assets include financial accounts deposited in Banks as well as other things such as  stock or securities issued by someone other than a U.S. person,any interest in a foreign entity, and any financial instrument or contract that has an issuer or counterparty that is other than a U.S. person, that are held for investment and not held in an account maintained by a financial institution. According to the IRS, examples of other specified foreign financial assets (not an exhaustive list) include, if they are held for investment: stock issued by a foreign corporation; a capital or profits interest in a foreign partnership; and interest in a foreign trust or foreign estate. 

Foreign specified assets embrace many aspects of which foreign financial are a part of.  Here is an IRS source that explains this and the difference between FBAR & 8938 filing requirements.

As far as reporting on a 3520, I looked in the instructions for form 3520, you do not need to report distributions from a Canadian RRSP plan.  I read this in the section titled Exceptions to Filing. 

It also mentions that certain eligible individuals’ transfers to, ownership of, and distributions from certain tax-favored foreign retirement trusts and certain tax-favored foreign nonretirement savings trusts, as described in section 5 of Rev. Proc. 2020-17. For more information about whether you are an eligible individual and whether your foreign trust qualifies for an exemption from foreign trust information reporting, see Rev. Proc. 2020-17, 2020-12 I.R.B. 539, available at IRS.gov/IRB/2020-12_IRB#REV-PROC-2020-17. You may research this link to see if your RESP or TFSA falls within the definition of a tax-favored trust that can be considered an exception for filing on a 3520.

Lastly, if you have a 3520 reporting requirement, Foreign Deposit Accounts ar accounts that are maintained in Foreign Banks. All other types of accounts are considered custodial.

Let me know if this helps. 

{Edited 03/02/23 } 1:36 PM PST} @bogao3037