Do I need to report my Superannuation on my FBAR?

Do I need to report a superannuation fund on my FBAR?

While the FBAR rules require that all financial accounts be reported on an FBAR if the taxpayer has ownership of or interest in accounts with are over $10,000 in aggregate at any time during the tax year, it is slightly unclear whether the IRS considers a Superannuation to be a foreign financial account which needs to be reported.  However, at Universal Tax Professionals, we agree that it is better to be safe than sorry, and a we recommend that our clients do include Superannuation’s on their FBARs  In addition, we also recommend that a Superannuation be reported on the form 8938.

How is a Superannuation Taxed on my Tax Return?

The IRS is also unclear as how exactly a Superannuation’s tax treatment on a year end tax return.  Unlike a US 401K, contributions are not deducted for the tax return.  While employer contributions to a Super are not usually taxes on an Australian tax return, they probably should be taxed on a US tax return.  As they are given as part of wages, it seems appropriate to include them in wage income. In addition, distributions should also be reported on your tax return.  This amount may be limited to the contributions.

There are various factors that can change for the tax treatment for a Superannuation.  Make sure to discuss your specific circumstances with your tax professional so that they can determine how to treat your Super.