PFIC classification for US investors

[rohitc99]

I wrote to clarke inc and they have confirmed they are mostly likely not a PFIC. ofcourse, there is always the disclaimer to check with your accountant

[muscleman]

It sounds like there is no worry if you buy PFICs in IRA or 403b. I am curious why 401k is NOT included in the exemption here. It makes no sense.

 

http://www.ey.com/Publication/vwLUAssets/US_persons_holding_PFIC_stock_through_tax-exempt_organizations_or_accounts_will_be_exempt_from_Form_8621_filing_requirements/$FILE/2014US_CM4364_US%20persons%20holding%20PFIC%20stock%20through%20tax-exempt%20orgs%20to%20be%20exempt%20from%20Form%208621%20filing%20reqs.pdf

 

 

"In Notice 2014-28, the IRS announced that it will amend the definition of

“shareholder” in the Section 1291 regulations to exempt US persons who indirectly

own stock in “passive foreign investment companies” (PFICs) through certain taxexempt

accounts and entities from being required to file Form 8621 for those PFICs

under Section 1298(f). The Notice covers PFICs owned by Individual retirement

accounts (i.e., IRAs), individual retirement annuities, qualified pension and deferred

compensation plans described in Sections 401(a), 403(b) or 457(b), tax-exempt

entities (e.g., charities), religious and apostolic organizations, state colleges and

universities, and qualified tuition programs, but not PFICs owned by charitable

remainder trusts described in Section 664."