Stupid RESP

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DonMurphyCanada
Posts: 73
Joined: Sat Mar 01, 2014 11:41 pm

Stupid RESP

Post by DonMurphyCanada »

OK,

Is a PFIC filing required for this "CASH" RESP?

I have to admit that I do not understand this market to market QIF stuff. I think I would also like to remain ignorant of the term Annuitant....


I found a few weeks ago that that because of a RESP that my wife and I own jointly (We SHOULD have put in in my name alone), she has filed 1040's 3520's and 3520a's for the last six years of our lives. Fine they go in the mail tomorrow. No tax owing. Very little income other than UCCB, RESP interest and CESG matching. Will also be filing the last 6 years of FINCEN 114 electronically in the next week.)

The RESP amounts to a little more than $6000 Can dollars. Looking on the statement there is straight interest reported on the statements (from my local credit union.)

The full amount of the RESP is listed as CASH Balance as listed on the statement.
There are 0 "Canadian Investments" listed on the statement.
There are 0 "Foreign Investments" listed on the statement.

Is a PFIC filing required for this?

I will be nuking the RESP prior to year end!


Thanks to any and all parties who post here. Special thanks to Nelsona and MGeorge as I have really benefited from your expertise. Thank you!
nelsona
Posts: 18688
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

PFIC refers to the investment within the account. If you do not have what IRS considers a PFIC (cash is not a PFIC) then you don't need to report it on the PFIC form. It would be part of your foreign holdings for all other purposes of course., including 8938 form.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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