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Old 05.09.2019, 17:53
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Taxation in the US if 2nd pillar is withdrawn

Hi,

I am living in the US and resident. I would like maybe to withdraw my 2nd pillar, but don't know what would be the tax rate? I know it would be added to my income and not considered as a pension plan...

I am married and living in NJ. Any hints?
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Old 05.09.2019, 18:00
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Re: Taxation in the US if 2nd pillar is withdrawn

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I am living in the US and resident. I would like maybe to withdraw my 2nd pillar
Where is the money now?
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Old 05.09.2019, 18:20
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Re: Taxation in the US if 2nd pillar is withdrawn

in Switzerland on a "libre passage" account
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Old 05.09.2019, 23:28
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Re: Taxation in the US if 2nd pillar is withdrawn

Just to clear up any ambiguity: Are you asking about US or Swiss tax liability?
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Old 06.09.2019, 00:55
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Re: Taxation in the US if 2nd pillar is withdrawn

US taxes
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Old 06.09.2019, 01:26
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Re: Taxation in the US if 2nd pillar is withdrawn

It's my understanding that it's considered income and would be taxed at your applicable income tax rate. If you have a large amount to withdraw, it could push you in to a higher tax bracket.
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Old 06.09.2019, 04:15
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Re: Taxation in the US if 2nd pillar is withdrawn

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Hi,

I am living in the US and resident. I would like maybe to withdraw my 2nd pillar, but don't know what would be the tax rate? I know it would be added to my income and not considered as a pension plan...

I am married and living in NJ. Any hints?
Were you a US citizen when working in CH? if so then there was no tax relief in the first place & you paid taxes on the money paid in. You would only be liable for interest received which should have been taxed by the US each year.
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Old 07.09.2019, 00:31
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Re: Taxation in the US if 2nd pillar is withdrawn

You should of been taxed already on the 2nd pillar. US does not recognize any foreign pension plan (except Canadian) and you most likely or should of already paid us tax on it. Therefore withdrawal is only Swiss taxed.
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Old 07.09.2019, 07:32
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Re: Taxation in the US if 2nd pillar is withdrawn

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You should of been taxed already on the 2nd pillar. US does not recognize any foreign pension plan (except Canadian) and you most likely or should of already paid us tax on it. Therefore withdrawal is only Swiss taxed.
I suspect the Swiss 'withholding tax' can be reclaimed as the money is taxable in the US.
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Old 07.09.2019, 10:02
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Re: Taxation in the US if 2nd pillar is withdrawn

There are no US taxes to pay on it.

There may have been or not when you earned it, depending on your income and housing exclusion amounts.

Tom
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