Are these official sources? I have always heard cash/term deposits are the only option for Americans with iDeCo.
What is the argument for it being exempt?
Are these official sources? I have always heard cash/term deposits are the only option for Americans with iDeCo.
(sorry, I meant to reply to this and seem to have edited it by mistake -my apologies)eslmedley wrote: ↑Fri Mar 04, 2022 7:15 am I've read a few places that PFICs that are part of an IDECO through your employer do not need to be reported to the U.S. I started an IDECO through my university and now am wondering if I need to get out before it reaches the max $25K when I will need to report and (yikes!) be penalized brutally for it. Does anyone know if this employer IDECO exception is a real thing?
I would second this. This does not sound like a tax expert.beanhead wrote: ↑Tue Mar 08, 2022 9:11 am 1) I would not assume that since it is apparently OK for Canada it is OK for Japan
2) I am not sure how much trust I would put in a free financial advisor
3) There are a bunch of Americans on here, and on the Reddit Japan Finance sub, who strongly advise American nationals not to invest in Japanese mutual funds, or even Japanese individual stocks, if they are of the group/conglomerate variety (Itochu, Marubeni, Orix etc)
As RJ says there is apparently one exception, which is DB plans, in which the employer decides what the investments are, not the employee. This may be the only way in which the IRS does not consider the individual to be investing in PFICs. Maybe...
I think tread with extreme caution, consider stopping this DC investment or switching it to cash, unless you get some qualified advice.