How does IRS view RPP's?

victoriaguy · Post by **victoriaguy** » Wed Jan 14, 2015 6:29 pm

Hi there,

I read on an old post on another forum that RPP's are reportable on form 3520. i thought they were a form of RRSP. Or are they more like a pension that just has to be reported on the FBAR? Or is it a different beast altogether?

Also, if it is 3520 reportable, is it also 3520A reportable, and do I have to report employer contributions as "other income" on the latter form?

Thanks for any insights.

nelsona · Post by **nelsona** » Thu Jan 15, 2015 8:41 am

RPP;s which you have no signing authority over (ie they are not in an account), do not require FBAR, but are to be included in form 8938 calculations.

I have always taken the position that RPP;s are not subject to 3520 and have never heard of any problems doing so.

victoriaguy · Post by **victoriaguy** » Thu Jan 15, 2015 4:43 pm

Thanks nelsona. I will do that too. Do you consider RPP's a variety of RSP?

Reason I ask is, I know form 8891 has technically been made obsolete by RP2014-55, but the streamlined instructions still indicate to include them, and the streamlined people won't give any guidance whether to use an 8891 for an RSP or not. So I'm using them and crossing my fingers. ;)

nelsona · Post by **nelsona** » Thu Jan 15, 2015 5:15 pm

RPP's are NOT a variety of RRSPs.

Just because 8891 has been retired does not mean that RRSPs are not included in other forms such as FBAR and 8938. in fact, becuase 8891 was retired, RRSP's require MORE reporting now (on 8938) becuase 8891 used to absolve one of detailed reporting. right now, until 2014 instructions and forms come out for 8938 there is no guidance for RRSPs. RPPs have always been subject to 8938 detailed reporting.

victoriaguy · Post by **victoriaguy** » Thu Jan 15, 2015 5:29 pm

Thanks for this reply and your other post on RSP's and 8938.

One last question then, if I may. For this RPP, should I be reporting employer contributions as income, or even any of the growth in it at all as income, as I don't have signing authority, as you say? Or just a commutable value?

Thanks man.

nelsona · Post by **nelsona** » Thu Jan 15, 2015 5:45 pm

Cdn RPPs are protected by treaty from taxation on internal gains until distribution.

nanic · Post by **nanic** » Thu Jan 15, 2015 9:41 pm

What value do I put, if I don't it. I have a defined Benefit Plan from the Canadian Government. Do I just put 0? Do I need to report it on 8938?