Pension · Switzerland
Swiss vested-benefits (Freizügigkeit) accounts & U.S. tax
When you leave a job or Switzerland, your 2nd-pillar can move to a vested-benefits account — here's the U.S. reporting and the PFIC angle.
A vested-benefits account (Freizügigkeit / libre passage) holds your 2nd-pillar assets when you leave an employer or Switzerland without immediately transferring into a new pension. For a U.S. person it raises the same two questions: reporting, and whether it holds PFICs.
Reporting
- Generally a reportable foreign account — on the FBAR if combined non-U.S. accounts exceed $10,000 at any point.
- And on Form 8938 if you cross the higher abroad thresholds.
The PFIC angle
Vested-benefits accounts come in two flavours — an interest-bearing (bank) account, or an invested one holding funds. An invested vested-benefits account holds non-U.S. funds, so those are generally PFICs needing Form 8621. An interest-only one has no PFIC.
Check your reporting and your funds
See whether you cross the FBAR and Form 8938 thresholds, then check any funds for PFICs. Atamatax is tax-preparation software, not a CPA firm, and this is not individualised tax advice.
Atamatax provides tax preparation support and educational resources. This website does not constitute legal or tax advice.