UK Workplace Pension and forms 3250 and 3250A

Hi all,

If I have a UK workplace pension (i.e. with Nest), is it considered a foreign trust and will it necessitate the filing of forms 3250 and 3250A?

There seems to be a lot of conflicting info out there, with most saying no you don't have to file the forms... unless you contribute more to the pension than your employer, which I do.

Also - Are there any other forms related to this subject that I need to be aware of?

Might be best to go to the actual source.... Good luck!

https://www.irs.gov/forms-pubs/about-form-3520-a


Exceptions To Filing

Rev. Proc. 2014-55 exempts from foreign trust information reporting certain Canadian retirement plans, including Canadian registered retirement savings plans (RRSPs) and Canadian registered retirement income funds (RRIFs), regardless of whether you are an eligible individual described in section 4.01 of Rev. Proc. 2014-55. For more information about whether your Canadian retirement plan qualifies for an exemption from foreign trust information reporting, see sections 3 and 5 of Rev. Proc. 2014-55, 2014-44 I.R.B. 753, available at IRS.gov/IRB/2014-44_IRB#RP-2014-55.

Rev. Proc. 2020-17 exempts from foreign trust information reporting certain eligible individuals’ transactions with, and ownership of, certain tax-favored foreign trusts that are established and operated exclusively or almost exclusively to provide pension or retirement benefits, or to provide medical, disability, or educational benefits. For more information about whether you are an eligible individual, and whether your foreign trust qualifies for an exemption from foreign trust information reporting, see section 5 of Rev. Proc. 2020-17, 2020-12 I.R.B. 539, available at IRS.gov/IRB/2020-12_IRB#REV-PROC-2020-17.

The exemptions from foreign trust information reporting described in Rev. Proc. 2014-55 and Rev. Proc. 2020-17 do not affect any reporting obligations under section 6038D or under any other provision of the U.S. law, including the requirement to file Financial Crimes Enforcement (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR), imposed by 31 U.S.C. section 5314 and the regulations thereunder. For more information, go to IRS.gov/FBAR.