Question

Where do I report a gain in a foreign pension account?

Forum|Forum|5 years ago
July 14, 2020
1 reply
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I worked in the UK for several years, and as a result I have a pension fund there which I declare on a FBAR and my Form 8938 as an "Other Foreign Financial Asset". This year it has increased in value by ~$3k, and I want to know where to declare this gain? This is so I can fill in the box on the 8938 (Part III, Line 1). I haven't been paid anything out of the account.

Not A Product Question

P

pk12_2

Employee

@Keo2 , I am not sure I fully understand your issue -- if you are required to file FATCA form 8938, then you just enter the amount of the value of the contract or are you trying to update and existing form 8938 or what ?

If you are trying to enter a new form 8938, go to the search box and enter "form 8938"-- then from the drop down list click "jump to form 8938" --- thereafter TurboTax should walk you through entering the required details.

Is there more I can do for you ?

F

fjpuentes1974

Hola!

I have reported the Other Asset and the gain in the asset. I get an error since I can't input the gain in my F1040, in what Schedule of form can I include the gain in my foreign pension account ?

M

MAK70

If your foreign pension's value showed a gain, you do not have to report it unless it was a Capital Gain Distribution. A capital gain distribution is a payment from a mutual fund or an exchange-traded fund (ETF) of proceeds from the fund's sale of stocks or other assets.

You would only report the income on your tax return if you started receiving distributions.

Just FYI, you may be required to file an FBAR and/or Form 8938.

The FBAR Foreign Pension Plan reporting rules define a foreign pension as an account which must be reported. Even if the account was opened and earned prior to becoming a U.S. Person and no distributions are being made, it still must be reported on the FBAR.

Certain U.S. taxpayers holding specified foreign financial assets with an aggregate value exceeding $50,000 will report information about those assets on new Form 8938, which must be attached to the taxpayer’s annual income tax return.

See How do I file an FBAR report (FinCEN 114)? - TurboTax

@fjpuentes1974