RetireJapan

I was talking to SBI iDeco chat this morning, and this is what they told me. What do you think? I don't know if I should 100% believe what a customer support representative says, but I'm sure they have some kind of training about this, right?"

This is why financial institutions like banks and brokerage firms are not supposed to give tax advice. They don't know. There are a variety of ways (FBAR, form 8621 if these really are PFICs, form 8938, etc.) in which they might potentially have to be "reported" and the US doesn't recognize the tax exempt treatment for foreign retirement accounts.

I guess SBI does not have to report anything to the IRS

Has anything further been learned in regards to this matter of Americans and iDeCo?

Since leaving my company I have a substantial DC portfolio on which the clock is ticking for next actions...

I have done some research on worst-case scenarios and from what I have seen the default PFA isn't a terrible option (ironically GPIF were a former client). If I can't get sorted I'll let it roll over in 5 months.

PFA 2022 performance:
https://www.pfa.or.jp/english/about/inv ... FY2022.pdf

Well, looks like my PFA option is rubbish, as it will be essentially cash.
If I roll over into a Nissay IDECo my only PFIC-free options are annuities.

Looking at Rakuten IDECo they offer their wrapped Vanguard funds. Does anyone know if these escape PFIC categorization as they are essentially Vanguard ETFs?

Since they're wrapped by Rakuten which is a foreign corporation, they're most likely a PFIC.

Rakuten is a foreign corporation?

Deep Blue wrote: ↑Tue Jun 04, 2024 10:17 am Rakuten is a foreign corporation?

From a US perspective.

I would say the fact that they are foreign listed mutual funds is the potential issue though.