Using 8891 to report RESP?
Moderator: Mark T Serbinski CA CPA
Using 8891 to report RESP?
I've just been told that one can use an 8891 to report contributions or income from an RESP account, and that a 3520 and 3520-A aren't necessary. The reason given was that since the money in the RESP could potentially be rolled over into an RRSP at a future point, then the 8891 is sufficient. Since I don't understand how to fill out a 3520, I'd be thrilled to discover if this is correct.
Whoever told you this was incorrect, both for the reason they gave you and due to the way IRS views RESP.
If indeed the RESP can be rolled into an RRSP (which requires a pretty narrow set od=f circumsttnces) then I would suggest that you do this, and then file 8891.
For now, continue to file 3520 -- and pay tax on the internal earnings of the RESP.
Shame on him/her.
If indeed the RESP can be rolled into an RRSP (which requires a pretty narrow set od=f circumsttnces) then I would suggest that you do this, and then file 8891.
For now, continue to file 3520 -- and pay tax on the internal earnings of the RESP.
Shame on him/her.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing