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Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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I hold some PFICs in a Roth IRA. Do I have to file a Form

Resolved Question:

I hold some PFICs in a Roth IRA. Do I have to file a Form 8621 for each holding? Any gains are nontaxable anyway.
Submitted: 5 years ago.
Category: Tax
Expert:  Lev replied 5 years ago.


Hi and welcome to Just Answer!


Because there is no gain or loss on any investment held in an IRA - no need to file a Form 8621.

Potentially for instance for RMD or other taxable distribution purposes – you might need to compute the correct value of your assets using “mark to market” – but RMD is not an issue for Roth IRA.

The disadvantage of holding PFICs in IRA is that you may not deduct foreign taxes paid.

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