To possibly reduce your US taxes on the Pillar II and III accounts, consider spreading the withdrawals over two years:
1) Withdraw your Pillar III this year.
2) Transfer your Pillar II to the Auffangeinrichtung BVG this year and then withdraw it next year.
- The Auffangeinrichtung (literally, "collection device") is a government-affiliated institution that is required to take all Pillar II funds, including abandoned Pillar II pensions. http://www.chaeis.net/en/stiftung-au...htung-bvg.html