Reporting requirements for defined contribution RPP

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Diskdoctor
Posts: 66
Joined: Wed Apr 21, 2010 9:46 am
Location: Winnipeg

Reporting requirements for defined contribution RPP

Post by Diskdoctor » Sat Jan 26, 2019 1:03 pm

Through her employment (in Canada) my wife is part of her employer's defined contribution registered pension plan. The employer matches employee contributions 1:1. She has some control over the investments as she can choose between a few different options and she knows the current value of the account. In the past I had understood employer pension plans to be exempt from FBAR reporting but have come across a few comments in this forum that seem to indicate otherwise.

Does this plan need to be reported on her FBAR as indicated in the link below?
http://www.ustaxservices.ca/single-post ... t-accounts
Is the account reported as a jointly owned account with the employer?

I know this account needs to be reported on form 8938. Are there other US reporting requirements? The income in the plan is US tax exempt, correct?

nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Reporting requirements for defined contribution RPP

Post by nelsona » Sat Jan 26, 2019 4:07 pm

This is her account. She needs to include it in FBAR. It is not really a joint owner. They are funding it, but it is hers.


It is not taxable until she takes withdrawals. She can choose to deduct her contributions from her wages for US tax purposes, this building up a non-taxable (in US) portion later, or she can reduce her wages now, and make the entire pension taxable in both countries when withdrawing.
Nelsona Non grata. Non pro. Search previous posts.

Diskdoctor
Posts: 66
Joined: Wed Apr 21, 2010 9:46 am
Location: Winnipeg

Re: Reporting requirements for defined contribution RPP

Post by Diskdoctor » Mon Jan 28, 2019 11:17 am

OK, thanks nelsona for the feedback!

She'll have to file some amended FBARs.

When I get to doing her taxes I'll have to review how I've handled the pension contributions (hers and employers) in the past.

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