Singapore pension fund (CPF) tax reporting for contributions, growth and distributions

[g456nb]

I became a US tax resident in 2024 and hold a Singapore pension fund (Central Provident Fund). Singapore and the US do not have a tax treaty. If I understand correctly, even though I'm not withdrawing anything from the CPF, I will still need to pay US taxes on the annual growth (interest and government payouts) in my CPF? However, I will not need to pay taxes on my own contributions to the CPF (I did not have employer contributions)? 

When I withdraw the entire CPF, say in 10 years 2035, would I then pay tax only on the original 2025 balance in the CPF fund, since the growth in the fund between 2025 and 2035 had already been taxed? 

Or if I were to only make small monthly withdrawals, say $1000: How would the $12K for the year 2035 be taxed, taking into account I had already paid tax on the appreciation between 2025-2035? 

Thanks very much for your help in advance. 

[pk · Accepted solution]

@g456nb 

(a)  generally  your own contribution and that of the employer ( if any ) are already taxed income -- I am assuming that this took place before your becoming a US person i.e. this was in the past.

(b) Yes , you will have to pay US taxes  on the growth  (  i.e. earnings whether  contrib. from govt  or just interest/ dividend etc. )  as they occur i.e. for each year the funds are in the plan.

(c) When you get a distribution from the plan ( you said 2035 and beyond),  recognize the distribution by using the format of  1099-R -- amount of distribution in Box 1,  taxable amount in Box 2a  ( it may be zero if all the growth has already been taxed   ) , distribution code in Box 7  (  probably 7 ) etc. --- SEE  the form here -->

2025 Form 1099-R  

(d) If the distribution is taxed ( at the time of distribution) by Singapore, then that tax would be eligible for  Foreign Tax Credit -- use form 1116 ( or its equivalent at that time ).

I came back to add --- don't forget that  you may be still under the FBAR and FATCA regs --

Does this answer your query ?   Is there more I can do for you ?