SIPP and reporting funds?

Hi, I'm transferring my UK pension to a SIPP and have to choose funds. I am a dual citizen.

I wanted to check - is a SIPP still caught in the catch 22 of PFIC/reporting funds? Or can I invest freely in anything I want within the SIPP wrapper? (apart from bitcoin of course, which the UK government has banned within pensions)

My previous pension was invested in PFICs for sure, I never thought about it, just filed my tax papers. But now I have to make my fund choices I am wondering whether an ETF or index fund, and the domicile, makes any difference to what I choose.

The wise counsel of this forum is appreciated!
Thanks
samothraki1

You are correct I believe that the pension wrapper of the SIPP means that you can invest how you like inside the SIPP without concerns about PFIC reporting. You will need to add the total value of the SIPP to your annual FBAR but not the highest values of the individual investments within it.

Thank you for the quick response. I had seen that hinted at several times, but wanted to be sure to avoid a sticky situation on pension taxes decades from now!

Thank you for the quick response. I had seen that hinted at several times, but wanted to be sure to avoid a sticky situation on pension taxes decades from now!

When you do start taking distributions they will all be counted as regular income, exactly the same as when you make distributions from an IRA.