Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation
Reply
 
Thread Tools Display Modes
  #1  
Old 05.08.2011, 21:43
Newbie
 
Join Date: Aug 2011
Location: Boston, MA
Posts: 1
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
finlator has no particular reputation at present
Taxation of Swiss pensions in the U.S.

I am a Swiss citizen who now lives in the U.S. since four years. Before moving to the U.S., I worked in Switzerland and contributed to a pension. When I moved to the U.S. I did not take the pension money -- it is still in an account at BEKB. Now I am a U.S. resident and taxpayer, and I would like to know whether the earnings of my Swiss retirement account are taxable by the American IRS as they accrue -- in other words, before I retire and begin to withdraw them. Again, by way of summary:

(1) Swiss citizen
(2) Swiss retirement pension
(3) Pension contributions earned solely through Swiss job by Swiss resident
(3) Account holder is now a U.S. resident and taxpayer
(4) Account holder is not yet retired
(5) Account holder is not taking any distributions

Are the internal earnings of the pension fund taxable in the U.S.? I have done some research on the internet, but the IRS website is hard to understand. Thank you!
Reply With Quote
  #2  
Old 06.08.2011, 07:52
Sundog's Avatar
Junior Member
 
Join Date: Nov 2008
Location: Basel
Posts: 49
Groaned at 0 Times in 0 Posts
Thanked 31 Times in 16 Posts
Sundog is considered knowledgeableSundog is considered knowledgeableSundog is considered knowledgeable
Re: Taxation of Swiss pensions in the U.S.

Yes. Both contributions to a Swiss pension from your employer, and any gains earned by the account are taxable income. Additionally, you will need to declare the account's highest value during the year on the FBAR that you are required to file.

I strongly suggest contacting an accountant with expertise in CH<->US tax matters. There is a double taxation treaty that will likely ease your tax burden.
Reply With Quote
  #3  
Old 06.08.2011, 20:33
Newbie 1st class
 
Join Date: Jul 2011
Location: Geneva
Posts: 29
Groaned at 3 Times in 3 Posts
Thanked 13 Times in 10 Posts
nikovteim is considered a nuisancenikovteim is considered a nuisancenikovteim is considered a nuisance
Re: Taxation of Swiss pensions in the U.S.

Quote:
View Post
I would like to know whether the earnings of my Swiss retirement account are taxable by the American IRS as they accrue.
First of all, for clarity: the contributions and appreciation /prior/ to when you became a US resident are not taxable by the US. (I hope that is obvious, but if not please reply).

AFTER you became a US resident: Most foreign (non-U.S.) pensions have not bothered to qualify as tax-exempt with the IRS, so "yes" the earnings are taxable by the IRS if (and /only/ if) you have the right to withdraw the funds. However, if you cannot withdraw the funds (for example, "not until age xxx"), then "no" since it the account is not under your control.

P.S. As a practical matter, the IRS has no possible way of finding your Swiss pension account.
Reply With Quote
Reply

Tags
earnings, irs, pension, tax




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Swiss pensions consolidated summary dannyt986 Finance/banking/taxation 200 25.08.2014 10:15
Swiss Pensions - General Summary / 3rd Pillar Pensions Longbyt Finance/banking/taxation 0 20.02.2011 17:38
Taxation on Swiss property rental when resident in the UK acr Finance/banking/taxation 11 24.09.2010 20:47
Effect of marriage for the full year taxation Gunpowderboy Finance/banking/taxation 8 17.12.2009 18:03


All times are GMT +1. The time now is 14:05.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0