Hi,
I have a question in regards of 2 accounts I hold in Switzerland (Pillar 2+3). I am a Swiss native, but US resident for the past 6 years. When leaving Switzerland I left my Pillar 2+3 accounts untouched in Switzerland but now, I feel it's time to take the money out and move to the US. I have been told by somebody that for both accounts, I would not only have to pay the tax at source (quellensteuer), but they would be considered regular income by the IRS and I would have to pay regular tax according to my income bracket here in the US. As I have read from several posts in this forum, both Pillars are not considered qualifying plans from a US standpoint - so shouldn't they be only taxed as capital and interest earned since I left Switzerland should be taxed but not the full amounts?
Does somebody know or can clarify? It seems totally unfair that I would need to pay 2x - Quellensteuer plus full income tax on money I earned before I made the decision to move to the US.
Thanks so much!
I have a question in regards of 2 accounts I hold in Switzerland (Pillar 2+3). I am a Swiss native, but US resident for the past 6 years. When leaving Switzerland I left my Pillar 2+3 accounts untouched in Switzerland but now, I feel it's time to take the money out and move to the US. I have been told by somebody that for both accounts, I would not only have to pay the tax at source (quellensteuer), but they would be considered regular income by the IRS and I would have to pay regular tax according to my income bracket here in the US. As I have read from several posts in this forum, both Pillars are not considered qualifying plans from a US standpoint - so shouldn't they be only taxed as capital and interest earned since I left Switzerland should be taxed but not the full amounts?
Does somebody know or can clarify? It seems totally unfair that I would need to pay 2x - Quellensteuer plus full income tax on money I earned before I made the decision to move to the US.
Thanks so much!