IS SDFCU CONSIDERED A FOREIGN ACCOUNT OR A U.S. ACCOUNT FOR FATCA AND FBAR REPORTING?
IS SDFCU CONSIDERED A FOREIGN ACCOUNT OR A U.S. ACCOUNT FOR FATCA AND FBAR REPORTING?
Answer
SDFCU accounts are not included in your Foreign Bank Account Report (FBAR/FinCEN Form 1124) or Form 8938 (Statement of Foreign Financial Assets, which is attached to your regular Form 1040). It is U.S. dollar denominated. You can “marry it up” with your financial planning including savings, retirement and college/school fees planning. Study the free information and consult your advisors. But remember, this account is a new thing and he or she may need to do a little homework.
SDFCU will introduce you to a financial counselor if you like or you can appoint your own financial advisor or investment manager. You do not have to say goodbye to your existing advisor/manager.
Many people will want to keep their local bank account wherever they live. The drycleaner in London may still want to debit your British Pound-denominated bank account down the street.