8938 question(s)

Mach7 · Post by **Mach7** » Fri May 25, 2012 11:11 pm

I have read over the instructions for the 8938 form and would like some confirmation on a few of the items.

it talks about reporting investments in foreign pension plans....

I have a Canadian Defined Benefit Plan with my company, and i have not a clue what it would be worth now...in fact i remember asking this same question regarding the FBAR and was told it was not tabulated on this form because i did not have signature authority over it...so do they now want it listed on the 8938?

Also...i am assuming that they don't want me to list my home on here? In other words is your primary residence considered a 'foreign financial asset'?

Filo · Post by **Filo** » Sat May 26, 2012 1:28 am

I hope someone more knowledgeable answers; I can only express my understanding of the 8938 instructions.

(a) On page 2 of the 8938 instructions -- "If you received no distributions during the tax year and do not know or have reason to know based on readily accessible information the fair market value of your interest, use a value of zero for the interest." So if you have not retired, your financial interest in the retirement plan is apparently defined to be zero. However, it looks like it is necessary to list it on form 8938, but with a maximum value of zero in 2011 if you have not yet retired.

(b) On page 1 of the instructions, a foreign financial asset is defined to include any financial account maintained by a foreign financial institution, or a stock or other security not held in an account. That seems to preclude real estate.

Mach7 · Post by **Mach7** » Sat May 26, 2012 7:46 am

Thanks Filo.

I will take your comments into consideration....but will keep digging as i need positive clarification on whether or not my Defined Benefit Plan has to be listed.

Also, the reporting requirements of 200k throughout the year or 300k at the end...would one include there house in this calculation?

Seems that my accountant has left me high and dry and will have to take care of this one (8938) myself.

Mach7 · Post by **Mach7** » Sat May 26, 2012 8:08 am

An additional question to this thread.....

it states in the instructions for the 8938 form that if we have included an 8891 form on our 1040, then it does not need to be listed here.

However on part 2 of the 8938 it states;

Note. If you reported specified foreign financial assets on Forms 3520, 3520-A, 5471, 8621, or 8865, you do not have to include the
assets on Form 8938. You must complete Part IV. See instructions

There is no mention or 'box' on page two of the 8938 where i can 'check off' to say that i have filed this form. ..just the irs instruction guidelines.

So i guess we just leave it blank (8938)?

testone · Post by **testone** » Sat May 26, 2012 9:03 am

See page 9 of the instructions to Form 8938 ("If you filed Form 8891 to report an interest in a Canadian retirement plan, check the box for Form 3520 and enter how many Forms 8891 (and Forms 3520) you filed."). Seems ridiculous that they didn't just add another check box for Form 8891. Of course, there is no need to file Form 3520 for the RRSP if you file the 8891.

Mach7 · Post by **Mach7** » Sat May 26, 2012 9:30 am

Thanks testone....not sure how i missed that :)

nittanyk · Post by **nittanyk** » Sat May 26, 2012 12:33 pm

I'm rapidly trying to get up to speed on all this. I just found out about 8891 and now I'm finding out about 8938 - and I've been in Canada for 10 years. My company had an RPP up until Jan 1 of this year when it got converted over to and RRSP. Does the RPP get reported on either the 8891 or the 8938? I have more than $75K in the RPP account - so I'd guess that puts me over the threshold and so I need to use 8938, right?

nelsona · Post by **nelsona** » Sat May 26, 2012 12:40 pm

If it was not an RRSP in 2011, then it cannot be reported on 8891, since this is ONLY for RRSP/RRIFs

nittanyk · Post by **nittanyk** » Sat May 26, 2012 12:45 pm

Thanks, nelsona. So, for IRS reporting purposes, do I have to report the existence of my RPP anywhere? I'm hoping no, since I don't believe I've ever mentioned it - except on a FBAR form. BTW - this whole situation came up because I have been using TurboTax and self-reporting - and it's only this year that the program flagged me to report my RRSP's on 8891... so I have a bunch of back filing to do... (I have a personal RRSP and my wife has a payroll deduction RRSP as well...)

nittanyk · Post by **nittanyk** » Sat May 26, 2012 12:46 pm

Thanks, nelsona. So, for IRS reporting purposes, do I have to report the existence of my RPP anywhere? I'm hoping no, since I don't believe I've ever mentioned it - except on a FBAR form. BTW - this whole situation came up because I have been using TurboTax and self-reporting - and it's only this year that the program flagged me to report my RRSP's on 8891... so I have a bunch of back filing to do... (I have a personal RRSP and my wife has a payroll deduction RRSP as well...)

nelsona · Post by **nelsona** » Sat May 26, 2012 12:59 pm

I think the answer is yes based on the previous discussion in this thread. Beware of the definition of "interest". You have an "interest" in your pension, since it belongs to you, but until it distributes to you, the figure used for the monetary "interest paid" to you is ZERO, Reporting AN interest in an account is not the same as reporting Interest paid to you from an account.

I'll leave it at that becuase I have purposely stayed out of the new forms debate.