UK company/university pension plans vs FBAR/8938

Dear all,

I worked in UK for a few years before and am now a GC holder in USA. When I worked in UK, I had a university pension plan and a company pension plan. I am wondering if I need to include the amounts in the plans (a few thousand pounds in total) in the form 8938 and/or TD F90-22.1. I once read in a forum, an article stated "employer- sponsored plans are fine and nothing to worry about" in regarding to the US tax. I do not know if this means that I do not need to report the amounts in the 8938 and TD F90-22.1.

Thank a lot in advance!

If you meet the reporting thresholds then both pensions should go on 8938 and if you have signature authority over the pension plans then they also go on TD F90-22.1.
If the pension plan is a final salary benefit plan where you have no ability to direct the investment of the funds then it would not need to be included on TD F90-22.1.

Thank you very much, Nun,

Actually, the university pension plan is the Universities Superannuation Scheme (USS) and the company one is the defined contribution plan (the company matched what I contributed up to 10% annual salary at that time). As far as I know, I do not have any control over the both, i.e. change investment, withdraw money. Of course, I will receive some money after I reach the chosen retirement age. 

As per your reply, I have to report both plans in the form 8938. Do you think if I have signature authority over the two plans?

Thank you so much again!

Thank you very much, Nun,

Actually, the university pension plan is the Universities Superannuation Scheme (USS) and the company one is the defined contribution plan (the company matched what I contributed up to 10% annual salary at that time). As far as I know, I do not have any control over the both, i.e. change investment, withdraw money. Of course, I will receive some money after I reach the chosen retirement age. 

As per your reply, I have to report both plans in the form 8938. Do you think if I have signature authority over the two plans?

Thank you so much again!

I'd check the DC plan. They usually offer a choice of investment funds and allow you to change how your money is invested which means that you have signature authority.

Also you should research how both pensions will be taxed in the US in both the accumulation and distribution phases.

last year my accountant told me to list my USS pension on the FBAR form (TDF) - bear in mind that last year everyone was listing everything on that form. I don't know if things have calmed down so I've just included the USS pension again this year.

Many thanks, Nun,

As per your advice, I will find out the tax in USA during the two phases and report both plans on the both forms.

Marty, thanks also for your info.

Many thanks, Nun,

As per your advice, I will find out the tax in USA during the two phases and report both plans on the both forms.

Marty, thanks also for your info.

The USS plan is a final salary benefit and so it not reportable on FBAR. The DC plan probably is reportable on FBAR. However, many people just report everything to be safe....that includes Oyster cards etc, etc.

You have two options for the taxation of the pensions, either make a treaty claim to shelter gains from US taxation, in which case any distributions will be treated as income, or don't make a treaty claim and treat the pensions as foreign grantor trusts. Tax professionals disagree about the validity of each approach. IMHO, and I'm not a tax professional, either can be argued, but the latter seems to be more popular with tax professionals and with high net worth people who would rather pay capital gains tax than income tax when they take distributions.

Hi, Nun, thanks a lot gain!

Your info/advice is very helpful. I will report both for safe.

Thanks and best regards!