FYI: Benefit Plan Reporting of Foreign Financial Accounts
By Cindy Van Bogaert
November 15, 2009
Here is your latest FYI: Employee Benefits Update from Cindy Van Bogaert, Partner and Chair of the Employee Benefits Practice Group at Boardman Law Firm LLP. This FYI addresses new developments regarding possible responsibility of benefit plans and those involved with benefit plans to file the Department of Treasury Form TD F 90-22-1 Report of Foreign Bank and Financial Accounts (known as FBAR).
According to the FBAR instructions, each United States person who has a financial interest in or signature or other authority over any foreign financial accounts, including bank, securities, or other types of financial accounts, in a foreign country, if the aggregate value of these financial accounts exceeds $10,000 at any time during the calendar year, must report that relationship each calendar year by filing Form TD F 90-22-1 with the Department of the Treasury on or before June 30, of the succeeding year. (As indicated below, there have been some delays in this deadline granted by the government.) A copy of the Form and the Instructions can be found at: http://www.irs.gov/pub/irs-pdf/f90221.pdf.
There are many questions among benefits practitioners about what might be covered and exactly who might have to report. The Department of Treasury most recently issued a delay until June 30, 2010 for (i) persons with signature authority over, but no financial interest in, a foreign financial account, and (ii) persons with a financial interest in, or signature authority over, a foreign commingled fund. Here is a link to the Notice 2009-62: http://www.irs.gov/irb/2009-35_IRB/ar07.html.
Actions Employers Should Take Now:
- Establish whether the plan has any direct or indirect investments in foreign financial accounts that might require a filing of Department of Treasury Form TD F 90-22-1 Report of Foreign Bank and Financial Accounts by either the plan or any other person or entity.
- Consider whether the delay in Notice 2009-62 covers the plan and any other person or entity with respect to the plan investments.
- Establish responsibility for monitoring and reporting.
Please contact me if you would like more information or assistance.
Upcoming seminars:
- I will be speaking about FBAR and other new 401(k) developments in EBIA's web-seminar, "401(k) Plan Roundup 2009," November 19, 2009. For information and to register: http://www.ebia.com/WebSeminars/401k/Intermediate/19965.
Other seminars include:
- "HIPAA Privacy Training and HIPAA Privacy New Developments," in Madison, WI on January 19, 2010. For more information, click here.
- "Fiduciary Responsibility," in Madison, WI on February 10, 2010. Contact me for details.
- "401(k) Plans," in Madison, WI on March 10, 2010. Contact nsayers@boardmanlawfirm.com for details.
- "HIPAA Privacy Heats Up," at the Midwest Claims Conference in Lake Geneva, WI on May 6, 2010.
- "Fiduciary Responsibility," at Wisconsin Retirement Plan Professionals, Ltd in Milwaukee, WI on May 27, 2010. For contact information: http://wrppl.org/Home/tabid/88/Default.aspx.
This FYI is not legal advice. Individuals should seek advice based on their particular circumstances from their own counsel.
If you have any questions or need assistance, please contact Cindy Van Bogaert at (608) 283-7543 or Email.
Would you like to have FYI: Employee Benefits Update sent directly to your e-mail inbox? If so, please send your request, with e-mail address, to Cindy Van Bogaert at Email.
