CPE: 1 hours
Advanced prep: None
Who should attend: Tax practitioners advising U.S. taxpayers on foreign tax issues or preparing income tax returns for Americans abroad.
The default U.S. tax treatment of a foreign retirement account is likely to be foreign grantor trust, but this can cause unexpected income tax and compliance requirements for the unsuspecting taxpayer. In some cases, an income tax treaty election can solve the problem and cause the foreign retirement account to be treated like a domestic tax-deferred qualified pension plan.
Analyze a foreign retirement account and determine whether a treaty election will solve the problem; learn how to prepare Form 8833 to make the treaty election or, if no treaty election is possible, how to properly report contributions to and distributions from foreign retirement accounts; and determine how to report income and capital gain earned on assets contributed to the plan.
- Determine when foreign retirement accounts are tax-deferred or taxable accounts.
- Identify when and how to make income tax treaty elections for foreign retirement accounts.
- Recognize the correct taxation of and reporting for foreign retirement accounts.
- Foreign retirement plans
- Income tax treaties
- Form 3520, Form 3520-A and Form 8938