RESP Reporting in 3520

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MartinPDonald
Posts: 5
Joined: Sun Mar 25, 2018 2:35 pm

RESP Reporting in 3520

Post by MartinPDonald » Sun Mar 25, 2018 6:17 pm

I have been US resident (Green Card) since 2016, and I have two RESP accounts created in 2009. My U.S. tax accountant, who filled up my 2016 taxes, did not complete the 3520/3520A forms. He did not know that this was required, so I am undertaking the task of reporting RESP accounts this year.

I have followed this forum for much of my information about this issue.

My question is whether I have to make separate forms 3520/3520A for each of the years from 2009 to 2017 and mail all to the IRS, knowing that I have lived in Canada from 2009 to beginning of 2016.

One more info is that I made a RESP withdrawal in 2016 to help with my Son's tuition in U.S. college.

Many thanks to your help.

MartinPDonald
Posts: 5
Joined: Sun Mar 25, 2018 2:35 pm

Further to my question on RESPs

Post by MartinPDonald » Tue Mar 27, 2018 1:44 pm

I did my research and found out that I only have to report the RESP account status in forms 3520/3520A for the years I became U.S. resident (2016 and forward).

But I do have a complication in my RESP transactions in 2016. I moved an amount of RESPS - in kind - from one to Bank to another in Canada.

I know that I will have to prepare two separate 3520/3520a for each RESP transaction because they are in two different Banks. What is the best way to report each of the transfer and contribution, in Parts II and III of form 3520A?

Diskdoctor
Posts: 73
Joined: Wed Apr 21, 2010 9:46 am
Location: Winnipeg

Post by Diskdoctor » Sat Mar 31, 2018 11:54 am

I would report it as a distribution from the one and a contribution to the other.

Have you taken a look at this thread? It has a lot of discussion on the details of filling out these forms:
viewtopic.php?t=4187&postdays=0&postord ... 20&start=0

MartinPDonald
Posts: 5
Joined: Sun Mar 25, 2018 2:35 pm

Distribution out of RESP

Post by MartinPDonald » Sat Mar 31, 2018 2:20 pm

I have learnt a great deal from this forum and have been putting together my forms 3520 and 3520A for 2017.

I may have missed somewhere in your discussions, but where does the withdrawal or distribution reported in the table of form 3520a, Part III. Contributions clearly go to line 17 as many of you wrote. But where do distributions go in that table? Does it go there at all?

Thanks for your responses.

MartinPDonald
Posts: 5
Joined: Sun Mar 25, 2018 2:35 pm

Distribution out of RESP

Post by MartinPDonald » Sat Mar 31, 2018 4:33 pm

I found elsewhere in the forums where someone mentioned that distributions do not enter into Form 3520-A, Page 2, Part III.

In order to make the table in Part III look correct, I modified line 17, Contributions to trust corpus and made it beginning of the year cash minus withdrawals and minus foreign taxes withheld. The withdrawal appears in Part II, Line 17a, and tax withheld appears in Part II, Line 10a.

This might look ambiguous to the IRS, but I am going to attach an explanation somewhere in the package. Has anyone encountered this situation?

Diskdoctor
Posts: 73
Joined: Wed Apr 21, 2010 9:46 am
Location: Winnipeg

Post by Diskdoctor » Sat Mar 31, 2018 8:18 pm

In 3520A part III (balance sheet) after withdrawing everything I just reported it all as zero. This may not be correct. I guess if you weren't withdrawing everything it would have to go somewhere. I would probably use line 19. If you attach an explanation you should have it covered. This is only a substitute 3520A after all.

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