I have a 401(k) plan in the United Kingdom. Do I have to file a Report of Foreign Banks and Financial Accounts (FBAR)?

by Leon J. Dutkiewicz Jr., CPA | Feb 03, 2014
askacpaiconI have a 401(k) plan in the United Kingdom with $35,000 in it. It is managed by a UK firm on behalf of my employer, which is a U.S. company. The investments are all in British pounds. Do I have to file an FBAR Form TD F-90-22.1 for the tax year 2013?

Generally, 401(k) plans are U.S.-based retirement plans and not UK pension plans. Therefore, these accounts would be deemed U.S. accounts and not foreign accounts, so they would not be subject to the FBAR reporting.   

Secondarily, in the Instructions to the FinCen Report 114 (FBAR) on page 49, the last paragraph specifically excludes “participants in, and beneficiaries of, tax-qualified retirement plans.” And since a 401(k) plan is a tax qualified plan, it would be excluded.

Answer By: Leon J. Dutkiewicz Jr., CPA, is a partner with UK US Tax Services LLP in Pitman, N. J. 
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