Question - RESP new rule impact on schedule B Part 3 Question 8

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complete
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Joined: Wed Mar 04, 2015 12:02 pm

Question - RESP new rule impact on schedule B Part 3 Question 8

Post by complete »

With the IRS 2020 changes around no longer needing to file a 3520+3520A for RESPs, are folks now answering Schedule B Part 3 (Foreign Accounts and Trusts) Question 3 as No?
The question states "During 2020, did you receive a distribution from, or were you the grantor of, or transferor to, a
foreign trust? If “Yes,” you may have to file Form 3520."
In years prior to the new rules the answer for an RESP would be YES (given that an RESP was probably considered a grantor trust), however now with the new rules should the answer be NO?
Thanks in advance.
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nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Question - RESP new rule impact on schedule B Part 3 Question 8

Post by nelsona »

If you have no RRSP, then the answer would be "no". Remember, that hose with RRSPs still have to answer yes, even though they do not need to file 3520.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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