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HI i m leaving switzerland for the US in january. I don t know what to do with my 2 and 3 pillar(pension) i m french and i should have my green card in 2018. if i leave the money in switzerland in a fund, will it be taxable on the fulll amount or just the interest? if i cash it and bright it,

will it be tax like an income?
What is the solution to save my retirement money?

Thank you
Switzerland foreign pension
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Tax Professional Answers

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Brett Thompson, JD, CPA
First, you must get a tax expert in Switzerland for your Swiss funds. Also contact a knowlegeable professional (CPA, Lawyer, etc) in the city where you intend to be residing. I can't advise you on that aspect. We (a client and I) use one in Zurich and another in a different town on the French side of the country. You should know that once you become a resident of the United States you are taxed similar to all US residents, citizens or not. I assume you plan to become a resident as soon as possible.

Then, you should consult Publication 901, US Tax Treaties which you can download from www.IRS.gov. There is a tax treaty and it states in part, on page 32: Income, other than a pension, paid by Switzerland or its political subdivisions or local authorities to an individual for services performed for the paying governmental body is exempt from U.S. income tax.
However, the exemption does not apply to payments for services performed in the United States by a resident of the United States who either:
-----Is a U.S. citizen, or
-----Did not become a U.S. resident only to perform the services.
Pensions paid by Switzerland for services performed for Switzerland are exempt from U.S. income tax unless the recipient is both a resident and citizen of the United States.
These exemptions do not apply to income or pensions for services performed in connection with a business carried on by Switzerland or its subdivisions or local authorities.

Tax Tables…other types of income subject to the treaty are at: www.irs.gov/individuals/international-taxpayers/tax-treaty-tables.
Leave a Comment 344 weeks ago

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Question Owner
thank you very much for your help.
Reply 344 weeks ago
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Question Owner
unless the recipient is both a resident and citizen of the United States.
so for my wife who is a us citizen but a swiss resident for the time she made all of the pension contributions, she shouldn t have to pay us tax, correct?
Reply 344 weeks ago
 

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