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If you got a question on an UN issue please post a comment here so that I can use it as a leader to write on something you wish to have posted.

Comments

[Martin]

I was with UNESCO from 1981 to June 2008 when I retired. I was a Kenya national but became a US resident with a green card Nov 2003. I received my lumpsum in July 2008 and my monthly payments thereafter. My contribution to the plan was $250,000. How do I report my lump sum for US taxes. Is the totality of my lump sum tax exempt? How about the monthly pension payments? I would appreciate your assistance on this as soon as you can. many thanks.
How do i te

[Merrill]

Martin,

I'll tell you what I know but I am not a tax expert, so you should consult with one to clarify what I say and the tax expert will be the professional to advice you. That is why I have posted a disclaimer in all my postings on tax and finance issues.
You got to establish the contribution to the pension fund that is tax-exempt. This is how Robert Smith, who outlines these procedures for AFICS New York, has it listed. In your case, part of your career was non-resident alien and part as a resident alien. So your contribution to the Pension Fund is made up of:
(a) Your actual contributions for your whole career, that is 1981 to June 2008; plus
(b) The organization's contributions while you were not a resident of the US, that is from 1981 to Oct 2003.

(a) + (b) would serve as the as the pension contribution to be recovered by the relevant denominator in the tax tables.

Since you were a US resident when you got your lump-sum, then that amount should be taxable. I am unable to advice you on the taxation system for the lump-sum as there are (I believe) tax-cushions not to tax you at the highest rate because you took a lump-sum. On the other hand, you should check with the tax-expert, whether it would be better to roll over your lump-sum into an IRA or take it and pay tax on it now. But there is a catch in your case, which I infer from pure logic, so check that out with the tax expert.
Your lump-sum (1/3, I assume) also contains your contributions and the organization's contributions when you were not a resident of the USA. Perhaps, your lump-sum should be reduced by that amount? Please check this out with the tax expert.

I would like you to share your experience with us.

Merrill

[tbergmann@unicef.org]

Is there a list of countries where UN pensions are tax free?