Hello everyone,
I’m trying to figure out how to report my Swiss 2nd pillar pension on Form 8938. Should it be treated as a foreign account or listed under other foreign assets? If it’s an account, would it qualify as a deposit account or a custodial account? And does the same apply to a subsite occupational pension fund account? I’ve scoured various sources but keep running into partial or conflicting information.
Earlier this year I left my job in Switzerland, and my 2nd pillar balance was transferred into a subsite occupational pension fund. From what I understand, the U.S. considers that transfer a distribution—and thus reportable as income—after subtracting my cost basis (my contributions, my employer’s contributions, and any pension fund earnings/distributions already taxed in the U.S.). Has anyone dealt with this before? If so, how did you report it (which line and on which form)?
I plan to engage a tax professional for a thorough review later on, but I need to submit something accurate by the filing deadline to avoid potentially severe penalties (starting at $10,000). Any guidance would be greatly appreciated!