# ACA "No need to file FBAR" account



## iota2014 (Jul 30, 2015)

American Citizens Abroad have a new benefit: join ACA and you can open a US account (not FBAR or FATCA reportable), with no need for a US address.

https://www.americansabroad.org/aca/sdfcuaccounts-description-and-faqs/



> ACA has teamed up with the State Department Federal Credit Union (SDFCU) to provide accounts for Americans residing abroad. This is the same account used by Americans working at US embassies as well as many other people living around the world. You can reside full-time or part-time abroad and still qualify. You don’t have to have an address in the US. You certainly don’t have to go to the trouble of creating a US Limited Liability Corporation or some such thing to open an account.


But of course:


> Many people will want to keep their local bank account wherever they live. The drycleaner in London will still want to debit your British Pound-denominated bank account down the street.


So you put the loose change in your local account in London or wherever, and you put the rest in the SDFCU account. Thus neatly avoiding not only FBAR/FATCA reporting, but also avoiding residence-country "passive income" taxation, and also making it much easier to avoid investing in potentially-troublesome residence-country funds, pension plans, etc. 

How to "repatriate" capital without having to live in America.


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## BBCWatcher (Dec 28, 2012)

My advice would be:

1. If you want to join American Citizens Abroad, then join American Citizens Abroad for $70. One benefit of ACA membership is that you are eligible to open an account with the SDFCU.

2. If you want an account with the State Department Federal Credit Union, then open an account with the State Department Federal Credit Union. They have always allowed U.S. persons living overseas to open accounts, and they still do. Just click on "Join" then "Overseas Applicant." If you are not already eligible to join through your affiliation with the companies and organizations they list then you can join the American Consumer Council for $5 and become eligible.


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## iota2014 (Jul 30, 2015)

Interesting. ACA seem to be saying ACA membership is required.


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## Bevdeforges (Nov 16, 2007)

The accounts are not reportable because they are US bank accounts and you'll get a nice 1099 (which is also sent to the government). They will know exactly how much interest you receive on the account and the credit union will also pretty much open up their records to the IRS just for the asking.

It's a nice deal if you need or want a US account. But you aren't really "avoiding" any reporting this way (except that you don't have to fill out the FBAR or the other funky paperwork).
Cheers,
Bev


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## iota2014 (Jul 30, 2015)

Bevdeforges said:


> The accounts are not reportable because they are US bank accounts and you'll get a nice 1099 (which is also sent to the government). They will know exactly how much interest you receive on the account and the credit union will also pretty much open up their records to the IRS just for the asking.


Of course. ACA are not claiming it's a way to hide money from the IRS. Their selling point is that it's a US account (hence no foreign account reporting) without the need for a US address.



> It's a nice deal if you need or want a US account. But you aren't really "avoiding" any reporting this way (except that you don't have to fill out the FBAR or the other funky paperwork).


I really don't think ACA is aiming this at would-be tax evaders. Surely most Americans abroad are not trying to hide money or evade tax. Many object to FBAR/FATCA filing because of the sheer hassle, and in the case of FATCA, the problems it causes with banks. I suspect that's ACA's target group.

Essentially, this ACA account is like many other offshore accounts - it lets you move money away from the source/residence country and into a more favourable tax regime.


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## BBCWatcher (Dec 28, 2012)

iota2014 said:


> ACA seem to be saying ACA membership is required.


Where do they say that?

ACA says that one benefit of ACA membership is that you are eligible to open an account with the SDFCU. True. Many other people are eligible to open an account with the SDFCU, including members of the American Consumer Council. ACA has no obligation to tell you the latter. I just did, and so does the SDFCU.


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## BBCWatcher (Dec 28, 2012)

iota2014 said:


> Essentially, this ACA account is like many other offshore accounts - it lets you move money away from the source/residence country and into a more favourable tax regime.


No, it doesn't do that. The tax regime is whatever the tax regime is. It might even be less favorable. (For residents of Italy that's probably true, to pick an example.)


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## ForeignBody (Oct 20, 2011)

iota2014 said:


> American Citizens Abroad have a new benefit: join ACA and you can open a US account (not FBAR or FATCA reportable), with no need for a US address.
> 
> https://www.americansabroad.org/aca/sdfcuaccounts-description-and-faqs/
> 
> ...


Useful information, but I cannot see that there is anything special about it. 

US citizens living overseas have normally always been able to maintain their US bank accounts with their overseas address.

If they are employed overseas they would still normally have to have their wages paid into a local bank account. They would then have to transfer funds back to America (and play the exchange rates) if they want to keep their overseas funds at a minimal level.

I have never had any problem using an American credit or debit card overseas. The dry cleaner doesn't care where the funds are coming from so long as he gets paid, but again you have to play the exchange rate game.

What does this have to do with where you hold your pension fund?


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