RRSP Reporting - Size of Account Balances.
Moderator: Mark T Serbinski CA CPA
RRSP Reporting - Size of Account Balances.
RRSP Reporting - Our joint balances in our RRSP's now exceed $400k. Is there additinoal reporting we have to do or just continue doing what we have on form 8891 and claiming the deferral on our 1040?. I thought I read somewhere abut maximums of 200k each but I may be wrong.
I would say FBAR for sure, and possibly form 8938...you most likely have other accounts besides the RRSP that may push you over the limit for reporting 8938.
Directly form the IRS webste;
If you are a taxpayer living abroad you must file for 8938 if:
You are filing a return other than a joint return and the total value of your specified foreign assets is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year; or
You are filing a joint return and the value of your specified foreign asset is more than $400,000 on the last day of the tax year or more than $600,000 at any time during the year.
Directly form the IRS webste;
If you are a taxpayer living abroad you must file for 8938 if:
You are filing a return other than a joint return and the total value of your specified foreign assets is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year; or
You are filing a joint return and the value of your specified foreign asset is more than $400,000 on the last day of the tax year or more than $600,000 at any time during the year.
RRSP Reporting - Size of Account Balances.
Thanks for your reply. I looked at 8938 and found the following under Part II
Part II
Other Foreign Assets (see instructions)
Note. If you reported specified foreign financial assets on Forms 3520, 3520-A, 5471, 8621, 8865, or 8891 you do not have to include the assets on Form 8938. You must complete Part IV. See instructions.
Then under Part IV they ask for the # of forms.
So how would i interpret this:
Do I complete the name etc section, Part I; jump to Part IV and put in the # of forms
Do I complete Part I or leave it empty?
Not very clear.
Part II
Other Foreign Assets (see instructions)
Note. If you reported specified foreign financial assets on Forms 3520, 3520-A, 5471, 8621, 8865, or 8891 you do not have to include the assets on Form 8938. You must complete Part IV. See instructions.
Then under Part IV they ask for the # of forms.
So how would i interpret this:
Do I complete the name etc section, Part I; jump to Part IV and put in the # of forms
Do I complete Part I or leave it empty?
Not very clear.
If you have sufficient RRSP holding you would still need to file 8938, but you would not need to list those assets, just the non-RRSP ones. And then you would indicate how many 8891's you sent.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
You would complete Part 1 of course, listing all of your bank accounts if you meet the reporting threshold from my previous post.
If you have many bank accounts, you will have to include a continuation sheet...which is basically has you copy of Part 1/2 as necessary and write "continuation sheet 1 of 2" ...."continuation sheet 2 of 2" etc etc on the top of the page(s).
Therefore you would list your deposit and custodial accounts on Part 1.
Since the IRS knows you are filing (in your case) an 8891 form for your RRSP, to reduce paperwork, they have allowed us to just tabulate the type of form (in your case 8891) and how many.
In my case i listed my savings account, checking account, stocks and my company Defined Pension Plan.
Your residential home does not need to be listed here.
I tabulated my savings account, on part 1, and my company defined benefit plan on part 2.
I then filled out Part 3 summary of tax items (information from my 1040) and listed my interest and dividends.
Since I had one 8891 included with my 1040, I filled out Part IV and checked off '8891' and '1'
I of course needed to include some continuation sheets becasue there is not enough room on the first page to list all of my accounts.
I am assuming you are a US citizen living in Canada as a perm resident, or dual?
If so, this form was required last year as well, so if your threshold is such that you had to report it and you did not, you might want to consider some options like filing an amended tax return (1040X) for last year.
If you have many bank accounts, you will have to include a continuation sheet...which is basically has you copy of Part 1/2 as necessary and write "continuation sheet 1 of 2" ...."continuation sheet 2 of 2" etc etc on the top of the page(s).
Therefore you would list your deposit and custodial accounts on Part 1.
Since the IRS knows you are filing (in your case) an 8891 form for your RRSP, to reduce paperwork, they have allowed us to just tabulate the type of form (in your case 8891) and how many.
In my case i listed my savings account, checking account, stocks and my company Defined Pension Plan.
Your residential home does not need to be listed here.
I tabulated my savings account, on part 1, and my company defined benefit plan on part 2.
I then filled out Part 3 summary of tax items (information from my 1040) and listed my interest and dividends.
Since I had one 8891 included with my 1040, I filled out Part IV and checked off '8891' and '1'
I of course needed to include some continuation sheets becasue there is not enough room on the first page to list all of my accounts.
I am assuming you are a US citizen living in Canada as a perm resident, or dual?
If so, this form was required last year as well, so if your threshold is such that you had to report it and you did not, you might want to consider some options like filing an amended tax return (1040X) for last year.