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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2563
Experience:  IRS licensed Enrolled Agent and tax instructor
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Robin, do you know if it is necessary to report Pillar 2

Customer Question

Hi Robin, do you know if it is necessary to report Pillar 2 Swiss Pension on the FinCEN Form 114? I understood that if it has under $200K it is not necessary to report. As this is an obligatory pension that employee and employer have to contribute to, it seems that it would not be necessary to report. Only Pillar 3 which is voluntary. Thanks, JK
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.
Hi, JK. My name is ***** ***** I will be happy to help you.
If you are US citizen or Green card holder you have an obligation to report:
1. foreign bank accounts (fincen 114, also known as FBAR)
2. FATCA (IRS form 8938)
Your assumption is correct. Pillar 2 will have to be reported only if the value is over $200K (FATCA)
Pillar 3 is non qualified (for IRS purposes) voluntary pension plan and is required to be reported on FBAR (fincen 114).
You can read more about the requirements here: http://www.acareturnpreparerdirectory.com/article/fbar-vs-fatca-a-comparison-of-filing-requirements.html
and here: http://www.taxesforexpats.com/articles/financial-planning/expat-return-and-retirement-accounts.html
you will have to scroll down a little to the Swiss pension plans.
I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.
Expert:  Lane replied 1 year ago.
,
Customer: replied 1 year ago.
Eva, thank you. Do I still need to report Pillar 2 pension on FinCEN Form 114? I understood it is only bank accounts. This is an obligatory pension fund, albeit controlled as a trust by a third-party, it nonetheless is NOT an asset I created. By Swiss law it is required to contribute too, so I cannot see this being a requirement for FinCEN 114. It is like US Social Security (as is Pillar 1). Pillar 3 I could certainly see being required. What is your expert opinion on this? Thanks.
Expert:  emc011075 replied 1 year ago.
No. Fincen, also known as FBAR is reporting of foreign bank accounts, money you have in a bank and have a full access to it. Pillar 2 pension plan would be reported under FATCA if the value of the account was more than 200K.
Under FBAR your only value of the bank accounts. Under FATCA you report assets, including pensions, stocks, corporate or partnership interest and only if the combined value of it is more than 200K.
Customer: replied 1 year ago.
Thank you. This makes sense.
Expert:  emc011075 replied 1 year ago.
You're welcome. I am happy to help. If you found my answers helpful, a Positive Rating would be greatly appreciated. Thank you!
And if there's anything else I can help you with today, just let me know.