You report foreign pension income on TurboTax by creating a substitute 1099-R (Form 4852) through the Wages & Income section under IRA, 401(k), Pension Plan Withdrawals. You will not receive a standard 1099-R from a foreign pension provider, so TurboTax treats your manual entry as a substitute form that flows directly to Form 1040, Lines 4a and 4b.
Under Internal Revenue Code (IRC) Sections 61 and 72, the IRS considers foreign pension distributions part of your gross worldwide income. Failing to report this income — or missing the related international information returns — can trigger penalties starting at $10,000 per violation for forms like the FBAR, Form 8938, and Form 3520. The IRS listed failure to report foreign financial assets as a key compliance priority, and enforcement actions in this area have increased every year since 2019.
Here is what you will learn in this article:
- 🧾 How to create a substitute 1099-R inside TurboTax when your foreign pension provider does not issue one
- 💰 Which IRS forms you need beyond your tax return — including the FBAR, Form 8938, Form 3520, and Form 1116
- 🌍 How U.S. tax treaties with countries like the UK, Canada, and Australia change the way your pension is taxed
- ⚠️ The exact penalties you face for not reporting — and how Rev. Proc. 2020-17 may save you from some of them
- ✅ Step-by-step TurboTax entries with real examples for private pensions, public pensions, and trust-classified retirement plans
Why the IRS Taxes Your Foreign Pension
The United States uses a citizenship-based taxation system. This means U.S. citizens, green card holders, and foreign nationals who meet the Substantial Presence Test must report all worldwide income to the IRS — no matter where it comes from. Your foreign pension is no exception.
IRC Section 61(a) defines gross income as “all income from whatever source derived.” This includes wages, interest, dividends, and pension distributions received from any country. IRC Section 72 then provides the specific rules for how pension and annuity income is taxed, including how to calculate the taxable portion of each distribution.
Many people assume a pension taxed overseas is not taxable again in the U.S. That assumption is wrong unless a tax treaty provides a specific exemption. Without treaty protection, you face full double taxation on the same pension income — once by the foreign country and once by the United States.
Treaty Countries vs. Non-Treaty Countries
The first question to answer is whether the country where your pension sits has a tax treaty with the U.S. This single factor shapes every reporting decision that follows.
| Treaty Country | Non-Treaty Country |
|---|---|
| May allow tax deferral on contributions and growth until distribution | Pension is taxable during all phases — contribution, growth, and distribution |
| Treaty may reduce the U.S. tax rate on distributions | Standard U.S. income tax rates apply to the full distribution |
| Public pensions may be exempt from U.S. tax entirely | No exemptions available without a treaty |
| You may need Form 8833 to disclose the treaty position | No treaty disclosure needed, but all income still reported |
If a treaty exists, you need to read the specific pension article in that treaty. Each treaty is different. For example, the U.S.-UK tax treaty allows deferral on UK pension contributions and growth. The U.S.-Canada treaty permits deferral on Canadian RRSPs and RRIFs under Revenue Procedure 2014-55. Australia’s superannuation funds get some treaty relief, but the IRS still classifies most of them as foreign trusts — which creates extra reporting headaches.
If no treaty exists, your foreign pension is fully taxable under standard U.S. rules. Countries in parts of Asia and Africa often lack treaties with the U.S. Your only tool to reduce double taxation in this situation is the Foreign Tax Credit on Form 1116.
Public Pensions vs. Private Pensions: A Tax Distinction That Changes Everything
Most U.S. tax treaties draw a hard line between public pensions (paid by a foreign government) and private pensions (paid by a private employer or personal retirement plan). This distinction directly affects who gets to tax the pension income.
Public pensions from a treaty country are typically taxed only by the source country. That means if you receive a government pension from the UK, the UK taxes it and the U.S. generally does not. On your Form 1040, you report the full pension amount on Line 4a, then subtract it on Line 4b with a reference to the applicable treaty article. This type of treaty-based exclusion is one of the exceptions listed in the Form 8833 instructions, so you usually do not need to file Form 8833 for public pensions.
Private pensions from a treaty country are still taxable by the United States because of the saving clause found in most treaties. The saving clause preserves the U.S. right to tax its own citizens and residents on worldwide income. You report the full distribution as taxable income and then use the Foreign Tax Credit to offset any foreign tax paid.
Three Phases of Foreign Pension Taxation
A foreign pension goes through three distinct phases: contributions, growth, and distributions. The U.S. tax treatment at each phase depends on whether a treaty applies.
Contributions: Are They Tax-Free?
In many countries, pension contributions are made pre-tax — the money goes in before income tax is deducted. The U.S. does not automatically honor this treatment. Unless a specific treaty says contributions are exempt (like the U.S.-UK treaty, which generally mirrors U.S. 401(k) limits), those contributions are taxable income to you in the year they are made.
This creates an odd situation. If your employer in Germany puts money into your pension pre-tax, you may still owe U.S. tax on that contribution in the same year. That amount then becomes your basis in the plan — money you already paid U.S. tax on — which reduces your taxable amount when you take distributions later.
Growth: Taxed or Deferred?
Most tax practitioners take the position that growth inside a foreign pension in a treaty country is not taxable until distributed. The logic is straightforward: you have not received the money, so there is nothing to tax yet. In a non-treaty country, the IRS may argue that the growth is currently taxable because no specific rule defers it.
Distributions: Where the Tax Bill Arrives
Distributions are the moment income becomes clearly taxable. You received money, so you owe tax on it. The taxable amount is the total distribution minus your basis (any after-tax contributions you already paid U.S. tax on). This calculation follows the rules in IRC Section 72 and IRS Publication 575.
Step-by-Step: Entering Foreign Pension Income in TurboTax
TurboTax does not have a dedicated “foreign pension” section. Instead, you enter the income through the 1099-R workflow and create a substitute 1099-R (Form 4852). Here is how to do it in both TurboTax Online and TurboTax Desktop.
TurboTax Online: Creating the Substitute 1099-R
- Sign into your TurboTax account and open your return.
- Go to Wages & Income.
- Scroll to Retirement Plans and Social Security.
- Click Start or Edit/Add next to IRA, 401(k), Pension Plan Withdrawals (1099-R).
- TurboTax asks: “Did you receive a 1099-R?” Select Yes.
- Choose I’ll type it in myself (do not try to import — your foreign provider is not in the system).
- Fill out the substitute 1099-R fields as described below.
- At the end of the entry, TurboTax asks if this is a substitute 1099-R. Select Yes to generate Form 4852.
TurboTax Desktop: The Same Path, Different Look
- Open your return and click Federal Taxes at the top.
- Select Wages & Income.
- Scroll to IRA, 401(k), Pension Plan Withdrawals (1099-R) and click Start.
- When asked if you received a 1099-R, choose Yes.
- Type the search term “1099-R” in the search bar and click Jump to 1099-R to go directly to the entry screen.
- Enter the required fields manually and mark it as a substitute form.
Filling Out the Substitute 1099-R Fields
Each box on the substitute 1099-R corresponds to a specific piece of information. Getting these right is critical because TurboTax uses them to calculate your tax. Here is what goes into each key box:
| 1099-R Box | What to Enter |
|---|---|
| Box 1 – Gross Distribution | The total amount you received from the foreign pension during the tax year, converted to U.S. dollars |
| Box 2a – Taxable Amount | The taxable portion — usually the same as Box 1 unless you have a basis (after-tax contributions you already paid U.S. tax on) |
| Box 2b – Taxable Amount Not Determined | Check this box if you are unsure of the exact taxable amount |
| Box 4 – Federal Income Tax Withheld | Leave blank — your foreign pension provider did not withhold U.S. federal tax |
| Box 7 – Distribution Code | Enter Code 7 for a normal distribution (if you are 59½ or older) or Code 1 for an early distribution (under 59½) |
| Payer’s Federal ID Number | Leave blank or enter zeros — foreign entities do not have a U.S. EIN |
Do not enter the foreign tax withheld in Box 4. Box 4 is only for U.S. federal income tax withheld. Foreign taxes go on Form 1116, which you will handle separately in the Deductions & Credits section of TurboTax.
What About the Payer’s Name and Address?
TurboTax requires a payer name and address. Enter the name and foreign address of your pension provider. If TurboTax rejects a foreign postal code, try entering “00000” as the ZIP code and selecting a U.S. state placeholder — then attach a note or use the “Explain” feature to clarify the foreign address.
Converting Foreign Currency to U.S. Dollars
The IRS requires you to report all income in U.S. dollars. You have two options for conversion, and both are accepted by the IRS for foreign pension income:
| Conversion Method | How It Works |
|---|---|
| Yearly Average Rate | Use the IRS annual average exchange rate for the entire tax year — simpler, one calculation |
| Transaction Date Rate | Convert each individual distribution at the exchange rate on the day you received it — more precise but more work |
The IRS publishes yearly average exchange rates on its website. For most people receiving monthly pension payments, using the yearly average rate is easier and produces a reasonable result. If you received one large lump-sum distribution, using the transaction-date rate may be more accurate and could work in your favor if rates shifted.
Keep records of which method you used and the exchange rates applied. The IRS can ask for this during an audit.
Claiming the Foreign Tax Credit (Form 1116) in TurboTax
If you paid taxes to a foreign government on your pension income, you can usually claim a Foreign Tax Credit on Form 1116 to reduce your U.S. tax bill. This is the primary tool to avoid double taxation.
When You Qualify for the Credit
You qualify if you directly paid or had tax legally imposed on you by the foreign country. There is one important catch: if the foreign country withheld taxes before distributing the pension to you and you only received the net amount, some tax practitioners argue that you did not technically “pay” the tax. This area is unsettled for certain pension types, so keep records of all withholding statements.
Entering the Foreign Tax Credit in TurboTax
- Go to Deductions & Credits in TurboTax.
- Scroll to Estimates and Other Taxes Paid.
- Click Start next to Foreign Taxes.
- TurboTax asks if you paid foreign taxes. Select Yes.
- Choose the type of foreign income — select General Category Income (pension income falls here, not passive).
- Enter the country name, the amount of foreign tax paid (converted to U.S. dollars), and the income earned in that country related to the pension.
- TurboTax will generate Form 1116 and calculate your credit.
The $300/$600 Shortcut
If you paid $300 or less in foreign taxes ($600 for married filing jointly) and all of the foreign tax was on passive category income, you can claim the credit directly on Schedule 3 without filing Form 1116. TurboTax handles this automatically. Pension income, however, is often categorized as general category income, which means this shortcut may not apply.
When You Need Form 8833 for Treaty-Based Positions
If you rely on a tax treaty to exclude, reduce, or modify the taxation of your foreign pension, you may need to file Form 8833 — the Treaty-Based Return Position Disclosure. This form tells the IRS you are taking a position that overrides the normal Internal Revenue Code.
There is an important exception under Treasury Regulation § 301.6114-1. You do not need to file Form 8833 if you are claiming a treaty exemption for income from pensions, annuities, social security, or other public pensions. This exception covers most people receiving foreign government pensions. Private pension recipients relying on treaty provisions beyond the standard exemption should file Form 8833 to be safe.
TurboTax does not support Form 8833. You must fill it out manually, print it, and mail it with your tax return — or attach it as a PDF if you are e-filing through a tax professional’s software. This is one of TurboTax’s biggest limitations for foreign pension filers.
FBAR: Reporting Your Foreign Pension Account to FinCEN
The FBAR (FinCEN Form 114) is a separate filing from your tax return. It goes to the Financial Crimes Enforcement Network (FinCEN), not the IRS. You must file an FBAR if the combined value of all your foreign financial accounts — including your foreign pension — exceeds $10,000 at any point during the tax year.
Does Your Foreign Pension Count as an “Account”?
Yes, in most cases. The IRS and FinCEN treat foreign pension plans held in custodial accounts as reportable foreign financial accounts. This includes UK Self-Invested Personal Pensions (SIPPs), Australian superannuation funds, and most European employer-sponsored pensions.
How to File the FBAR
The FBAR is filed electronically through the FinCEN BSA E-Filing System. You cannot file it on paper, and you cannot file it through TurboTax. The due date is April 15 with an automatic extension to October 15 — no extension form needed.
FBAR Penalties
The penalties for not filing an FBAR are severe. A non-willful violation carries a penalty of up to $10,000 per account, per year. A willful violation can result in the greater of $100,000 or 50% of the account balance. Criminal penalties are also possible in extreme cases.
FATCA Form 8938: Another Layer of Reporting
Form 8938 (Statement of Specified Foreign Financial Assets) is required by the Foreign Account Tax Compliance Act (FATCA). It is filed with your tax return — unlike the FBAR, which is filed separately. Many people need to file both the FBAR and Form 8938 for the same foreign pension.
Filing Thresholds for Form 8938
The thresholds depend on where you live and your filing status:
| Filing Status | Living in the U.S. | Living Abroad |
|---|---|---|
| Single | $50,000 end of year / $75,000 at any time | $200,000 end of year / $300,000 at any time |
| Married Filing Jointly | $100,000 end of year / $150,000 at any time | $400,000 end of year / $600,000 at any time |
Form 8938 Penalties
The penalty for not filing Form 8938 is $10,000 for each failure, plus an additional $10,000 for every 30 days the form remains unfiled after IRS notice, up to a $50,000 maximum. There is also a 40% underpayment penalty on any tax tied to unreported foreign assets. TurboTax does support Form 8938, but only in TurboTax Premier or higher editions.
Form 3520: When Your Foreign Pension Is a Trust
Some foreign pensions — especially UK SIPPs and Australian superannuation funds — are classified by the IRS as foreign trusts. If your pension is a foreign trust and you receive distributions or make contributions, you must file Form 3520 (Annual Return to Report Transactions with Foreign Trusts).
The penalty for not filing Form 3520 is the greater of $10,000 or 35% of the gross reportable amount. That means a $100,000 distribution from a trust-classified pension could trigger a $35,000 penalty for a single missed form.
Form 3520-A (Annual Information Return of Foreign Trust with a U.S. Owner) may also be required. The trust itself is supposed to file 3520-A, but if the foreign pension provider does not file it (and they almost never do), you are responsible. The penalty for a missing Form 3520-A is the greater of $10,000 or 5% of the trust’s gross value.
TurboTax does not support Form 3520 or Form 3520-A. You must file these separately, either manually or through a tax professional.
Revenue Procedure 2020-17: Relief From Trust Reporting
Rev. Proc. 2020-17 provides significant relief for many foreign pension holders. It limits the obligation to file Forms 3520 and 3520-A for certain foreign retirement plans that meet specific requirements.
To qualify, your foreign pension must be a tax-favored retirement plan organized in its home country, operated to provide retirement benefits, and contributions or benefits must be limited by the local law. If your plan qualifies, you may not need to file Forms 3520 and 3520-A at all. You still need to file the FBAR and Form 8938 even if Rev. Proc. 2020-17 exempts you from trust reporting.
If you were already penalized for failing to file Forms 3520 or 3520-A for an eligible plan, you can request penalty relief by filing Form 843 (Claim for Refund and Request for Abatement) with the statement “Relief pursuant to Revenue Procedure 2020-17” on Line 7.
Form 8621: When Your Pension Holds Foreign Mutual Funds
Many foreign pensions invest in foreign mutual funds. The IRS classifies these as Passive Foreign Investment Companies (PFICs), which carry their own punishing tax rules and reporting requirements under Form 8621.
PFIC rules can result in higher tax rates and an interest charge on “excess distributions.” If your self-directed pension (like a UK SIPP) holds foreign mutual funds, each fund may require a separate Form 8621. TurboTax has limited support for Form 8621, and most filers with PFICs need professional help.
Three Real-World Scenarios
Scenario 1: Maria’s UK Private Pension
Maria is a U.S. citizen living in Texas. She worked in the UK for 15 years and now receives £1,200 per month from a private UK employer pension. The UK withholds 20% tax on each payment.
| Step | What Maria Does |
|---|---|
| Convert to U.S. dollars | Uses the IRS yearly average rate to convert £14,400 annual pension to approximately $18,000 |
| Create substitute 1099-R in TurboTax | Enters $18,000 in Box 1 and Box 2a, Code 7 in Box 7 |
| Report on Form 1040 | $18,000 appears on Line 4a and Line 4b as fully taxable (private pension — saving clause applies) |
| Claim Foreign Tax Credit | Enters approximately $3,600 in foreign tax paid through TurboTax’s Foreign Tax section; Form 1116 generated |
| File FBAR | Reports the UK pension account on FinCEN Form 114 (account value exceeds $10,000) |
| File Form 8938 | Not required — her total foreign assets are under the $50,000 threshold |
Maria pays U.S. tax on the full $18,000 but offsets most of it with the $3,600 Foreign Tax Credit. Her net additional U.S. tax is minimal.
Scenario 2: James’s Canadian RRSP Distributions
James is a green card holder in Michigan. He has a Canadian RRSP worth CAD $250,000 and started taking distributions of CAD $20,000 per year. Canada withholds 25% on RRSP distributions to non-residents.
| Step | What James Does |
|---|---|
| Convert to U.S. dollars | Converts CAD $20,000 to approximately $14,800 using the IRS average rate |
| Treaty deferral check | Under the U.S.-Canada treaty and Rev. Proc. 2014-55, growth was deferred — now taxable upon distribution |
| Create substitute 1099-R | Enters $14,800 in Box 1 and Box 2a, Code 7 in Box 7 |
| Claim Foreign Tax Credit | Canada withheld 25% ($3,700 USD) — James enters this in the Foreign Tax section |
| File FBAR | Reports the RRSP account (CAD $250,000 well exceeds $10,000) |
| File Form 8938 | Required — his foreign assets exceed $50,000 |
James does not need to file Form 3520 because Canadian RRSPs are specifically exempt from foreign trust reporting under Rev. Proc. 2014-55.
Scenario 3: Sarah’s Australian Superannuation
Sarah is a dual U.S.-Australian citizen living in California. Her Australian superannuation fund is worth AUD $350,000 and she received a lump-sum distribution of AUD $50,000.
| Step | What Sarah Does |
|---|---|
| Convert to U.S. dollars | Converts AUD $50,000 to approximately $32,500 |
| Trust classification | The IRS treats Australian superannuation as a foreign trust |
| Create substitute 1099-R | Enters $32,500 in Box 1 and Box 2a, Code 7 in Box 7 |
| File Form 3520 | Required — she received a distribution from a foreign trust (unless Rev. Proc. 2020-17 applies) |
| Check Rev. Proc. 2020-17 | If her super fund qualifies, she skips Form 3520 |
| File FBAR | Reports the super account (AUD $350,000 exceeds $10,000 USD) |
| File Form 8938 | Required — well above the $50,000 threshold |
| Check for PFICs | If the super fund holds foreign mutual funds, Form 8621 may be needed for each fund |
Sarah’s situation is the most complex. The trust classification, PFIC exposure, and multiple reporting forms make Australian superannuation one of the hardest foreign pensions to report correctly.
Mistakes to Avoid When Reporting Foreign Pension Income
Entering foreign tax in Box 4 of the 1099-R. Box 4 is for U.S. federal tax withheld. Foreign tax goes on Form 1116. Putting it in Box 4 creates a phantom credit the IRS will reject — and it could trigger a notice or audit.
Forgetting the FBAR because you already filed Form 8938. These are two separate filings with different thresholds, different agencies, and different deadlines. Filing one does not satisfy the other.
Using the wrong distribution code in Box 7. Code 7 is for normal distributions (age 59½ or older). Code 1 is for early distributions. Using the wrong code can result in an unexpected 10% early withdrawal penalty on your return.
Ignoring Form 3520 for trust-classified pensions. If the IRS considers your pension a foreign trust and you fail to file, the penalty can reach 35% of the distribution value. Rev. Proc. 2020-17 may exempt you, but you need to confirm eligibility — not just assume it.
Attempting a “quiet disclosure” for past years. If you missed reporting foreign pension income in prior years, filing corrected returns without using an approved IRS program (like the Streamlined Filing Compliance Procedures) is risky. The IRS treats this as a quiet disclosure and may impose full penalties.
Skipping currency conversion documentation. The IRS can ask you to prove the exchange rate used. Keep a record showing whether you used the yearly average or transaction-date rate, and the source of the rate.
Do’s and Don’ts for Foreign Pension Reporting
| Do ✅ | Don’t ❌ |
|---|---|
| Do create a substitute 1099-R for every foreign pension distribution — TurboTax needs it to generate Form 1040 Lines 4a/4b | Don’t skip reporting because you did not receive a 1099-R — the IRS expects you to self-report |
| Do check the tax treaty before filing to see if your pension qualifies for an exemption or reduced rate | Don’t assume all foreign pensions are treaty-exempt — the saving clause keeps most private pensions taxable |
| Do file the FBAR electronically through FinCEN’s BSA portal by April 15 (auto-extended to October 15) | Don’t try to file the FBAR through TurboTax — it is not supported there |
| Do claim the Foreign Tax Credit on Form 1116 for taxes you directly paid to the foreign country | Don’t claim a credit for foreign taxes that were withheld if you never had a legal obligation to pay them |
| Do check if Rev. Proc. 2020-17 exempts you from Form 3520/3520-A before spending hours on those forms | Don’t ignore Form 3520 requirements — the penalty can be 35% of the distribution |
| Do keep all pension statements, withholding records, and exchange rate documentation for at least 6 years | Don’t throw away foreign pension documents after filing — the IRS statute of limitations for international forms can be longer |
Pros and Cons of Using TurboTax for Foreign Pension Reporting
| Pros ✅ | Cons ❌ |
|---|---|
| Substitute 1099-R entry walks you through the key fields step by step | No Form 8833 support — you must file this manually for treaty-based positions |
| Form 1116 (Foreign Tax Credit) is built into Deductions & Credits | No Form 3520 or 3520-A support — trust-classified pensions require outside preparation |
| Form 8938 is available in TurboTax Premier and above | No FBAR filing — you must go to FinCEN’s website separately |
| Automatic currency fields for some entries | Limited guidance on which Box 7 code to use for foreign distributions |
| Affordable compared to hiring an international tax CPA | No PFIC/Form 8621 support for pensions holding foreign mutual funds |
Which TurboTax Version Do You Need?
Not every TurboTax edition handles foreign income. If you have a foreign pension, you need at least TurboTax Premier (Online) to access Form 8938 and foreign tax credit features. TurboTax Deluxe can handle the substitute 1099-R but may not include full support for all international forms.
TurboTax Desktop (Home & Business or Premier) gives you more flexibility for manual entries and overrides, which is helpful when dealing with foreign pension quirks. The desktop version also lets you print and mail forms like Form 8833 that the online version cannot handle.
Penalty Summary Table
| Form | Penalty for Not Filing |
|---|---|
| FBAR (FinCEN 114) | $10,000 per non-willful violation; greater of $100,000 or 50% of account for willful violations |
| Form 8938 | $10,000 per failure + $10,000 per 30-day period (max $50,000) + 40% underpayment penalty |
| Form 3520 | Greater of $10,000 or 35% of gross reportable amount |
| Form 3520-A | Greater of $10,000 or 5% of trust’s gross value |
| Form 8621 (PFIC) | No fixed penalty, but the IRS can keep the statute of limitations open indefinitely until filed |
FAQs
Can I e-file my tax return with foreign pension income through TurboTax?
Yes. You can e-file using a substitute 1099-R in TurboTax. Forms 8833, 3520, and 3520-A cannot be e-filed through TurboTax and must be mailed separately.
Do I need to report a foreign pension if I have not taken any distributions yet?
No — in most treaty countries. If growth is deferred under a treaty, you report nothing until distributions begin. Non-treaty countries may require reporting of annual growth.
Does TurboTax automatically calculate the foreign currency conversion?
No. You must convert foreign pension amounts to U.S. dollars yourself using the IRS yearly average rate or the transaction-date rate before entering the amounts.
Can I claim both the Foreign Tax Credit and the Foreign Earned Income Exclusion on pension income?
No. Foreign pension income is unearned income and does not qualify for the Foreign Earned Income Exclusion (FEIE). You can only claim the Foreign Tax Credit.
Will the IRS know if I do not report my foreign pension?
Yes, likely. FATCA requires foreign financial institutions to report U.S. account holders to the IRS. Many countries share pension data through automatic exchange agreements.
Do I file the FBAR through TurboTax?
No. The FBAR is filed electronically through FinCEN’s BSA E-Filing System, completely separate from your tax return and outside of TurboTax.
Is my foreign pension subject to the 10% early withdrawal penalty?
Yes, possibly. If you receive distributions before age 59½ and use Code 1 in Box 7, the IRS may apply the 10% penalty unless a treaty or exception applies.
Can I deduct contributions I made to a foreign pension plan?
No, generally. The IRS does not allow deductions for contributions to foreign pension plans unless a specific tax treaty provision permits it, like the U.S.-UK treaty.
What happens if I reported my foreign pension wrong in past years?
Yes, you can fix it. File amended returns or use the IRS Streamlined Filing Compliance Procedures if you were non-willful. Do not attempt a quiet disclosure.
Does Rev. Proc. 2020-17 eliminate all foreign pension reporting?
No. It only eliminates the Form 3520 and 3520-A requirement for qualifying plans. You must still file the FBAR, Form 8938, and report income on Form 1040.
Do I report a lump-sum foreign pension distribution differently than monthly payments?
No. Both go on a substitute 1099-R. A lump sum may push you into a higher tax bracket, so consider the transaction-date exchange rate for a more accurate conversion.
Can my spouse’s foreign pension affect my FBAR filing?
Yes. If you file a joint FBAR, your spouse’s foreign pension account counts toward the $10,000 aggregate threshold. Married couples can file a joint FBAR or separate ones.
Related reading
- Are Foreign Pensions Reported on FBAR? + FAQs
- Where Do I Enter 1099-R on TaxAct? (w/Examples) + FAQs
- Are Foreign Pensions Taxable In The US? (w/Examples) + FAQs
- Are Foreign Pension Contributions Tax Deductible? (w/Examples) + FAQs
- Where Do I Put Foreign Pension On Tax Return? (w/Examples) + FAQs
- How Do You Report a 72(t) on Form 5329? (w/Examples) + FAQs
- How to Fill Out IRS Form 8300 (w/Examples) + FAQs