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Old 22.06.2020, 14:44
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Where to report Pillar 2 employer contributions for US taxes?

Hi folks,

Iíve been googling around trying to figure out how to deal with my Swiss pension for my US taxes. Iíve learned that my (employee) contributions to Pillar 2 are not deductible in US taxes and that I probably should report my employer contributions to Pillar 2 as unearned income. But Iím not sure where I should report the employer contributions (what form?) and if (and where?) I should report the growth in my pension fund. Iíve seen some suggestions to put these on form 8938, but Iím still well below the $200,000 reportable limit. Since even with the employer contributions Iíd still be below the foreign income exclusion, I thought it might be advantageous to report these now and thus build the tax basis for retirement deductions.

I am a duel citizen (US + Swiss) and qualify for the foreign income exclusion. Iím 37 years old and think thereís a good chance I might still be in Switzerland by retirement age. Iím also using the TurboTax free online edition, in case anyone knows that software specifically.

Thanks in advance for any advice or suggestions!
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Old 01.07.2021, 07:37
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Re: Where to report Pillar 2 employer contributions for US taxes?

Hi,

I would be interested in seeing how others do this as well. I've just been adding my employers contributions to my wages on line 1 of 1040. This could be wrong.

I'm not sure about where to report fund growth, but maybe 1040 schedule B as interest?
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Old 01.07.2021, 10:59
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Re: Where to report Pillar 2 employer contributions for US taxes?

Most important is to report all non-US accounts on the FBAR. https://www.fincen.gov/report-foreig...ncial-accounts

2nd most important is to not use the useless TurboTax. Its only designed to be used by lower income earners stateside.
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Old 01.07.2021, 17:04
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Re: Where to report Pillar 2 employer contributions for US taxes?

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Hi,

I've just been adding my employers contributions to my wages on line 1 of 1040.
Employer contribution to 2nd Pillar arises directly from your employment so is included in earned compensation on Line 1 of Form 1040, also Form 2555 for foreign earned income exclusion. Fun stuff!
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Old 01.07.2021, 17:07
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Re: Where to report Pillar 2 employer contributions for US taxes?

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Most important is to report all non-US accounts on the FBAR. https://www.fincen.gov/report-foreig...ncial-accounts

2nd most important is to not use the useless TurboTax. Its only designed to be used by lower income earners stateside.
Maybe 3rd important for US citizens: avoid 3rd pillar investments in non-US mutual funds due to PFIC compliance headaches.
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Old 02.07.2021, 09:15
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Re: Where to report Pillar 2 employer contributions for US taxes?

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Maybe 3rd important for US citizens: avoid 3rd pillar investments in non-US mutual funds due to PFIC compliance headaches.
More like avoid 3rd pillar altogether. Less Swiss tax but more US tax.
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Old 04.07.2021, 23:41
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Re: Where to report Pillar 2 employer contributions for US taxes?

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More like avoid 3rd pillar altogether. Less Swiss tax but more US tax.
Only presuming you decline the FEIE?
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Old 05.07.2021, 09:08
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Re: Where to report Pillar 2 employer contributions for US taxes?

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Only presuming you decline the FEIE?
Has more to do with the FTC
https://www.irs.gov/individuals/inte...ign-tax-credit
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Old 05.07.2021, 10:41
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Re: Where to report Pillar 2 employer contributions for US taxes?

right, but you can't take FTC on income schielded by the FEIE. You can however, take FTC on any income over the max FEIE. So you are still right.
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