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  • thunderlips
  • Hero of Waygookistan

    • 1981

    • June 07, 2012, 10:01:55 am
    • South Korea
Severance accounts and FATCA and FBAR and IRS
« on: November 08, 2019, 02:34:49 pm »
So just posting this more out of curiosity than anything.

For those of us who keep renewing/transferring, I've heard our severance is paid into a bank account (usually Nonghyup but varies) and is held in escrow. Well after this year my severance account should be over $10,000. I am aware FATCA is basically requiring foreign banks etc to report Americans accounts and FBAR is for self reporting. So do you report these accounts?

Also is it possible to get a partial withdraw on these funds, for example a pay out from my first year or two severance pay? The are two reasons I would like to get a partial pay out. First I claim my income on US taxes, so if it gets paid all at once I will get hit with taxes. Second I'd like to open a Roth IRA account in the US and fund it with some of this money. Roth accounts have a cap of $6,000 per year (varies slightly).  Anyone ever get a partial payout from severance?

Thanks for reading. Enjoy your weekend.

**EDIT- Just realized my pension will also need to be reported :/  **
« Last Edit: November 08, 2019, 02:56:38 pm by thunderlips »

Re: Severance accounts and FATCA and FBAR and IRS
« Reply #1 on: November 11, 2019, 03:00:43 pm »
I recommend talking to a CPA or tax specialist. I have been working with a CPA who is Korean, but lives and works in the USA. He is knowledgeable about the USA tax process and seems to know about the Korean process too, but he doesn't do Korean tax stuff (that I know of.)  You can google and find CPAs who are familiar with the expat situation.