FBAR

[Sofitalian 132]

To all Canadians: Is FBAR required for Canada RRSPs if the value is over USD 10,000?  Our account here in the US said it's not required for retirement account.

[Crazy Cat 39,218]

That might be correct.  I would get another opinion.

 

https://www.irsstreamlinedprocedures.com/foreign-pension-plan-fbar/

 

Edited April 5, 2021 by Lucky Cat

[Sofitalian 132]

1 hour ago, Lucky Cat said:

That might be correct.  I would get another opinion.

 

https://www.irsstreamlinedprocedures.com/foreign-pension-plan-fbar/

 

Thanks. But I don't have any Canadian Pension Plans. I only have a current RRSP account since I became non-resident years ago.

[Crazy Cat 39,218]

2 minutes ago, mave said:

Thanks. But I don't have any Canadian Pension Plans. I only have a current RRSP account since I became non-resident years ago.

Then, your accountant could be correct.  Good luck.

[Sofitalian 132]

31 minutes ago, Lucky Cat said:

Then, your accountant could be correct.  Good luck.

But then I found this on the IRS FBAR Reference Guide: 

 

• Any other accounts maintained in a foreign financial institution or with a person performing the services of a financial institution. o Example: A Canadian Registered Retirement Savings Plan (RRSP), Canadian Tax-Free Savings Account (TFSA), Mexican individual retirement accounts (Fondos para el Retiro) and Mexican Administradoras de Fondos para el Retiro (AFORE) are foreign financial accounts reportable on the FBAR.

 

 

[IndigoFlowers 130]

From what I have read, I am pretty sure you do have to file an FBAR for your RRSP if the amount is over $10,000 USD. I would personally file an FBAR for it. Luckily, the FBAR is pretty easy to file online yourself if you have your account numbers and totals ready. 

 

 

 

 

[Sofitalian 132]

Another question - I only became a US person in Oct 2020, I noted that I would have to file FBAR based on the foreign financial accounts thresholds. Then if the maximum value in 2020 occurred before I became a US person, I should still use that value because it's the maximum value in a calendar year. Am i correct?

 

[Sofitalian 132]

2 minutes ago, IndigoFlowers said:

From what I have read, I am pretty sure you do have to file an FBAR for your RRSP if the amount is over $10,000 USD. I would personally file an FBAR for it. Luckily, the FBAR is pretty easy to file online yourself if you have your account numbers and totals ready. 

 

 

 

 

Thank you so much. When our US Accountant said I don't require to file FBAR for RRSPs, I don't trust him. Then my husband and I did some research, and he thought we should just file it ourselves as it's not that complicated. I'm glad I can get some advice here.

[IndigoFlowers 130]

1 minute ago, mave said:

Thank you so much. When our US Accountant said I don't require to file FBAR for RRSPs, I don't trust him. Then my husband and I did some research, and he thought we should just file it ourselves as it's not that complicated. I'm glad I can get some advice here.

My accountant basically said the same thing! Thankfully I did my own research and realized that the FBAR is quite simple to submit and I could do it myself - you will be just fine submitting it yourself ☺️. The penalties for not submitting it are harsh and I didn't want to deal with that headache. 

 

 

[Sofitalian 132]

50 minutes ago, IndigoFlowers said:

My accountant basically said the same thing! Thankfully I did my own research and realized that the FBAR is quite simple to submit and I could do it myself - you will be just fine submitting it yourself ☺️. The penalties for not submitting it are harsh and I didn't want to deal with that headache. 

 

 

Thanks @IndigoFlowers I just talked to an assistant on FBAR Helpline and verified all is correct.

[Crazy Cat 39,218]

3 hours ago, mave said:

Another question - I only became a US person in Oct 2020, I noted that I would have to file FBAR based on the foreign financial accounts thresholds. Then if the maximum value in 2020 occurred before I became a US person, I should still use that value because it's the maximum value in a calendar year. Am i correct?

 

That is how I interpret it....but I am no CPA...😀.   I think you are very wise to ask these questions. 

[Wuozopo 4,285]

3 hours ago, mave said:

Another question - I only became a US person in Oct 2020, I noted that I would have to file FBAR based on the foreign financial accounts thresholds. Then if the maximum value in 2020 occurred before I became a US person, I should still use that value because it's the maximum value in a calendar year. Am i correct?

 

Yes

[Sofitalian 132]

33 minutes ago, Wuozopo said:

Yes

Thanks. Before I saw your reply, I also asked the FBAR Helpline and got the same.

 

Digging further - even for accounts or provident fund accounts that were closed but existed in the year I file for FBAR, I still have to include them - so now it's more hassles to include multiple accounts, but I think I got them right. Hopefully less work next year.

[Wuozopo 4,285]

3 hours ago, mave said:

Thanks. Before I saw your reply, I also asked the FBAR Helpline and got the same.

 

Digging further - even for accounts or provident fund accounts that were closed but existed in the year I file for FBAR, I still have to include them - so now it's more hassles to include multiple accounts, but I think I got them right. Hopefully less work next year.

Yes, closing an account during the year does not exclude it from FBAR. But next year you can drop it. 😀 

 

[Sofitalian 132]

1 hour ago, Wuozopo said:

Yes, closing an account during the year does not exclude it from FBAR. But next year you can drop it. 😀 

 

Oh, I just remember now that I had one securities account with my foreign bank which had no activity/no balance/no transaction for a few years. In 2020 it was put as "inactive" by the bank because there hadn't been any transaction/balance for a few years. I didn't have any statement in 2020 since it was put as inactive. Now since I have to file FBAR for 2020, do I still need to include this even though I don't have a statement?

 

In addition, this securities account was officially terminated by my bank in early Jan 2021 since I became U.S. resident due to relevant dealing restrictions requirements from the bank.