If a person holds mutual funds within a RESP, would these shares need to be listed separately as an account on FBAR?
This is assuming the person own at least 50% of the RESP and that an FBAR is considered to be a trust.
(Not asking about PFIC here. That's a separate issue.)
FBAR for account within RESP
Moderator: Mark T Serbinski CA CPA
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Re: FBAR for account within RESP
It's a weird question by the way, because this account only holds mutual funds, so if it was to be listed twice, it would be the same funds, just slightly different details.
Re: FBAR for account within RESP
The RESP is an account, reportable on the FBAR and Form 8938.
The RESP is also a trust, but it doesn't require Form 3520 reporting (see Rev. Proc. 2020-17 § 5.04 re "trust... for the provision of, medical, disability, or educational benefits...").
The FBAR reports accounts, not positions within the accounts. The mutual fund positions within the RESP are not reported individually on the FBAR. Their value is counted as part of the RESP.
The mutual funds may be PFIC's. If a mutual fund is a PFIC, your shares of it trigger Form 8621 reporting, even if they're held inside an RESP.
The RESP is also a trust, but it doesn't require Form 3520 reporting (see Rev. Proc. 2020-17 § 5.04 re "trust... for the provision of, medical, disability, or educational benefits...").
The FBAR reports accounts, not positions within the accounts. The mutual fund positions within the RESP are not reported individually on the FBAR. Their value is counted as part of the RESP.
The mutual funds may be PFIC's. If a mutual fund is a PFIC, your shares of it trigger Form 8621 reporting, even if they're held inside an RESP.
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Re: FBAR for account within RESP
Thanks. That is the conclusion I also reached!