Receiving retirement funds from Australia

[user17718511787]

Hi,
I have a retirement fund in Australia from when I worked there more than 25 years ago.   I am now in my 70s and am about to retire.  What are the U.S. tax implications of transferring a payout from the Australian retirement fund to my U.S. bank account?

[DawnC]

Because you’re now in your 70s and presumably a U.S. tax resident, the U.S. will tax you on worldwide income, including distributions from an Australian retirement fund.  Typically, contributions are not subject to US tax, but earnings are.   

Were you a US citizen when the account was being funded?  

Have you reported the fund on FBAR or Form 8938 or 3520?

[user17718511787]

No, I wasn't a U.S. citizen at the time the fund was created.  I wasn't a U.S. citizen until more than 12 years after I last made a contribution to the fund.

[RogerD1]

Taking a payout and transferring it to your US bank account, will be considered a taxable event and will be reportable as income in the year that you make the transfer.  If you pay any taxes in Australia for the distribution, these taxes can be claimed for a foreign tax credit on your US return.

Since you have been living in the US for a few years now, hopefully you have been keeping up with the annual reporting requirements of foreign accounts that DawnC mentioned to you in the previous post.