FBAR & 8938 filing requirements for mandatory foreign pension plans in Colombia

I've dealt with this exact situation before. The key distinction for FBAR reporting is whether you have financial interest in or signature authority over a foreign financial account. For Colombian mandatory pension funds (AFPs like Porvenir, Protección, etc.), you do have a financial interest in the account even though access is restricted until retirement. The FBAR exemptions typically apply to certain government pension funds or programs like Social Security equivalents, not privately managed mandatory plans. So yes, you should report this on both Form 8938 (if you meet the filing thresholds) AND on the FBAR if your total foreign accounts exceed $10,000 at any point during the year. The fact that it's mandatory and you can't access it until retirement doesn't exempt it from FBAR reporting requirements. It's always better to over-report than under-report when it comes to foreign accounts. The penalties for failing to file FBAR can be severe, even if unintentional.

After dealing with similar confusion about my Chilean AFP pension account, I discovered taxr.ai https://taxr.ai which specifically handles these complex foreign account reporting situations. I uploaded my pension statements and it immediately identified that both FBAR and 8938 were required in my case. The tool flagged that private foreign pensions don't qualify for FBAR exemptions, even when mandatory and inaccessible until retirement. It also helped me understand how to value and report the account properly since the statements were in Spanish and pesos. Saved me hours of research!

I was initially unsure about using an online service for something as complex as foreign account reporting, but I tried taxr.ai after seeing the recommendation here. I uploaded statements from both my Colombian and Argentine accounts and it immediately sorted out which needed FBAR reporting (all of them) and which needed 8938 reporting (based on thresholds). It even flagged that my Argentine account had a special reporting requirement under FATCA that I hadn't known about. The guidance was clear and specific to each country's pension system. Definitely worth it for peace of mind that I'm compliant with all the reporting requirements!

I spent 4+ hours on hold with the IRS trying to get a straight answer about my Colombian pension reporting requirements. After multiple disconnections and conflicting answers, I found Claimyr https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. They connected me to an IRS agent in under 15 minutes who confirmed I needed both FBAR and 8938 filing. The agent clarified that private foreign pensions (even mandatory ones) don't qualify for exemptions unless specified in a tax treaty, and the US-Colombia treaty doesn't have such provisions. Saved me from potential penalties and got me a definitive answer directly from the IRS.

I have to admit I was completely wrong about Claimyr. After commenting here, I decided to try it for my Brazilian pension question since I was getting desperate. Not only did they connect me to the IRS in about 12 minutes, but the agent was able to pull up the specific Internal Revenue Manual section about foreign pension reporting. The agent confirmed that Brazilian private pension accounts must be reported on both FBAR and 8938, despite being mandatory and restricted until retirement. They even emailed me the relevant guidance afterward. I can't believe I wasted so many hours before trying this service!

Something everyone seems to be missing is the distinction between "foreign retirement accounts" and "foreign pension funds" in the regulations. I found this IRS guidance that suggests certain foreign social security-type pensions might be exempt from FBAR: "Retirement plans for which the United States is a party to an International Social Security Agreement (also known as Totalization Agreements) are exempt from FBAR reporting if the pension is managed by the foreign government and is equivalent to social security." But Colombia's private AFP system definitely wouldn't qualify since it's privately managed, not government-run social security.

Has anyone looked into whether these foreign pension contributions can be excluded from income under the Foreign Earned Income Exclusion? I'm trying to figure out if I need to add back in my Colombian pension contributions when calculating my FEIE amount.

I went through this exact same situation with my Colombian AFP account last year. After consulting with a tax professional who specializes in expat taxes, I can confirm that you absolutely need to report it on both FBAR and Form 8938. The key points that apply to your Porvenir account: 1. **FBAR reporting is required** - Even though it's mandatory and you can't access it until retirement, you still have a beneficial interest in the account. The private management by AFP companies means it doesn't qualify for any government pension exemptions. 2. **Form 8938 reporting is also required** - Since your account exceeds the $10,000 threshold and you're filing as single (assuming from your post), you'll need to include it on Form 8938 as well. 3. **Valuation can be tricky** - Make sure to convert the peso value to USD using the exchange rate on December 31st of the tax year. Your AFP should provide year-end statements that show the account balance. 4. **Don't forget about employer contributions** - If your employer is making matching contributions to your AFP account, those count toward your total account value for reporting purposes. The penalties for non-compliance are severe, so it's definitely better to over-report. I learned this the hard way after initially thinking my account might be exempt due to the retirement restrictions.