Hello,
I am preparing my US tax return (already filed for an extension) and I am over the thresholds for both FBAR and form 8938. Do you know if I should report my vested benefits on form 8938 as a deposit account or as “other foreign asset” and chose “Trust” as the type of foreign entity?
I know that the 2nd pillar is considered a foreign trust. Does the same apply to the vested benefits or then it is simply a savings account?
Another things is form 3520/3520-A. As far as I understand, even if the vested benefits are considered a foreign trust, form 3520 does not have to be filed. This is based on many sources, e.g., ( https://www.goldinglawyers.com/swiss…0-reporting/):
Generally, unless the employee has contributed more to the pension plan than the employer has, it is not reported on Forms 3520, since the beneficiary is not the owner of the trust during the years the beneficiary is employed and funding the pension.
In addition, it may qualify for a Revenue Procedure exception under Rev. Proc. 2020-17, depending on the person’s salary, age (determines percentage contributions), voluntary vs. mandatory, and employed vs. self-employed.