Short Guide to Australian Superannuation Treatment in the US

Generally, Contributions into the Superannuation Fund are taxable and do not receive tax-deferred treatment, similar to how 401K contributions are tax deferred.

Since the funds are not being distributed, and the Superannuation is a form of pension, the growth within the fund may escape tax until distributed.

The U.S. and Australia have entered into a Tax Treaty. The treaty generally authorizes the country of Residence of the Taxpayer to tax the income.

The Superannuation is considered foreign financial account and is reportable on the FBAR (aka FinCEN Form 114) in any year the threshold is met.

The Superannuation is considered a specified foreign financial asset and is reportable on the FATCA Form 8938 in any year the threshold is met.

While technically a Superannuation is an employment trust, whether or not it is reportable on Forms 3520/3520-A as a Foreign Trust is debatable. Rev. Proc. 2020-17 may apply.

Some Taxpayers may take the position that the Superannuation is actually Social Security and not taxable. To do so, a Form 8833 is most likely required.

Depending on the tax status of the beneficiary at the time of distribution, the person may take a Form 8840 position to show a closer-connection to another country(s).