# Canadian pensions and form 8938



## Ladyhawk (Sep 11, 2011)

Not sure if this thread is still alive but here goes.
It is 2019 and I am back in the USA but my money is all in Canada.
I have done my FBAR as usual, but now I have to do 8938.
I have no idea what is a custodial account. On my FBAR I reported my bank accounts and my investment accounts. For the 8938, I will list them in Part V.

BUT I now have two Canadian pensions. Are they custodial accounts? Or are they "Other foreign assets? 
And if they have to go in Part VI as "other", how on earth do I figure out their maximum value for the year?
Is a pension a "foreign entity", or do I have an "interest in the foreign entity" (line 7 Part VI)?
Who or what is the "issuer', is it the previous employer or is it the firm that sends me the checks?
What do I say about the issuer or counterparty (Line 8 b Part VI)?

Thanks to any who can help. Good Lord.


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## Bevdeforges (Nov 16, 2007)

Have moved you out into a thread of your own to make sure you get some responses.

First of all, if you have Canadian government pensions, those do NOT count as "foreign assets." Anything that is a "defined benefit pension" is not reportable on form 8938.

There are some specific Canadian pension plans (i.e. where you save money toward your retirement) that have special treatment for US purposes, but I'll let those with more experience in these things counsel you on that.


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## Ladyhawk (Sep 11, 2011)

Thanks much Bev. 

I do have both CPP and OAS which I know are not reportable. 
However I also receive two University pensions from my working years. Do they qualify as "defined benefit pensions" for that purpose? They are my major source of income, so I assume they go on the 8938 . I just don't know where.

I also have a RIF but I think that is also reported in part V , since I have reported them on my FBAR along with my bank and investment accounts.
Bonnie


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## Bevdeforges (Nov 16, 2007)

A "defined benefit pension" is one where you find out how much you'll be receiving when you retire - and it doesn't have a "cash value" because it isn't an "investment." Unless your university pension works like a US IRA or 401K (where you put money away and on retirement start drawing down the funds in the account) then you are safe to presume that it is NOT reportable on the 8938 form. You just report the pension proceeds as you receive them on your 1040.


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## Ladyhawk (Sep 11, 2011)

That makes sense to me. I have been working with an accounting firm in Minnesota and was told that on the 8938 I was supposed to list everything that I listed in my FBAR but that I also had to include my university pensions in some way. 

It is very difficult to find tax accountants in Minnesota who are familiar with US residents /citizens that have foreign income and holdings, which surprised me since it is a northern border state. You'd think there are a lot of people who live on one side and work on the other. 
Thank you for the help. Much appreciated.
Bonnie


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## Bevdeforges (Nov 16, 2007)

I've found that tax accountants in the US are very weak on cross border tax issues.

But if you're talking to your accounting firm again, you might mention that what you have is a "defined benefit" pension. That isn't a financial asset, like an IRA or 401K, that has a value. How you report a pension like that depends to a great extent on the relevant tax treaty.


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