# Reporting non-USA govt. sponsored pension on US taxes



## honeybadger (Jun 1, 2013)

I have a government sponsored private pension savings fund in Sweden. That is, the money in the fund can only be invested in a small number of choices, and all gains accumulate tax free in Sweden (remark-- tax free in Sweden, which has some of the highest taxes in the world). You pay tax on the money when you take it out at retirement; at which time all withdrawals count as income.

I know I need to report this account on my FBAR.

My question is if I need to report any capital gains as income on my 1040? 

If so, it seems like double taxation-- since ALL withdrawals (at retirement) are taxed as income. But if I pay capital gains in the US, then I have already paid tax on the gains.


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## Bevdeforges (Nov 16, 2007)

Well, if you pay taxes on the gains as they accumulate (won't be capital gains - more like interest income from a bank or investment account), then you won't have to pay US taxes when you withdraw the funds at retirement - at least not to the US.

Unfortunately, the US doesn't recognize foreign retirement savings, even if they function in more or less the same way that the US IRA and 401K plans do. 
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

The IRS doesn't _generally_ recognize foreign tax-favored retirement savings accounts, but there are some exceptions included in tax treaties. The U.S. and Sweden have a tax treaty, and you should read it carefully to check whether it applies to your Swedish pension savings.


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