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Canadian Pension Account

The question has come up whether a Canadian RRSP (similar to an IRA or

401(k)) account that holds cryptocurrency, needs to be reported on Form 1040 as a "financial asset." I know they need to be reported on the FBAR and Form 8938. But on the 1040?

My thought is that they don't. According to the IRS such accounts are treated the same as an IRA or 401(k) and not considered taxable until the money is withdrawan. But I haven't been able to find anything dealing with this one particular point.

Any information would be appreciated.

Reply to
Stuart O. Bronstein
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Under the treaty, the RRSP is considered a pension. As such, one does not need to answer Yes to the 1040 question on cryptocurrency. As transactions inside a pension are not reported I see no reason why anything would show up on a 1040 until such time there is a distribution from the RRSP. The treaty says the US resident reports the taxable amount based on what would have been taxable if the person was a Canadian resident. Canada reserves the right to tax the distribution (this would trigger an FTC on the US return) but at a rate no higher than 15%.

So effectively, only the FBAR and the 8938 would have to be filed to disclose the foreign account.

Reply to
Alan

Thanks Alan. That was my conclusion too. But while I deal with a lot of tax issues, I don't do returns, so I wanted the perspective of someone who is close to this issue.

Reply to
Stuart O. Bronstein

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