Under the Foreign Account Tax Compliance Act (FATCA), U.S. citizens and other individuals (including U.S. Legal Permanent Residents) who are filing U.S. tax returns as residents must report specified foreign financial assets on IRS Form 8938 if their total value exceeds certain thresholds. This form must be attached to your annual federal tax return. Under the regulations currently in effect, your interest in the Staff Retirement Plan is a specified foreign financial asset and may be subject to reporting. For more detailed information, please refer to the FAQ document on this subject. Failure to report may result in significant penalties.
Who Needs to Report?
- Married filing jointly: Report if combined foreign attached assets exceed $100,000 on the last day of the year or $150,000 at any time during the year.
- Single or married filing separately: Report if foreign attached assets exceed $50,000 on the last day of the year or $75,000 at any time during the year.
- Higher thresholds apply for U.S. individuals living abroad.
How to Report Your SRP Interest:
- Active Net Plan Participants (not eligible for lifetime pension): Report the fair market value of your SRP interest.
- Active Net Plan Participants (eligible for lifetime pension): Report the value of your SRP interest as zero.
- Active Gross Plan Participants: Report the value of your SRP interest as zero.
- Retirees: Report the value of your SRP interest as the amount of distributions received in the most recent taxable year.
Additional Information:
- For more details, please refer to the IRS website or consult with a tax professional.
- The IRS Form 8938 and instructions are available for free on the IRS website.
Disclaimer: While the Bank Group is not required to alert its pension plan participants of any changes in tax laws of any of its member countries, we are supporting you by providing this general information. The Bank Group does not assume any responsibility for any error or omission on your personal tax return that may have been filed by you before or after reading this alert. This notice is for general information only and does not constitute professional tax or legal advice. Please consult with a tax adviser for specific guidance.
