Transferring money

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Re: Transferring money

Post by admin » Tue Aug 14, 2018 7:55 pm

As i recall, the AFP pension was expressly excluded.

Paying in to the AFP for most people, is not optional; just like SS.
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thisisreallycomplicated
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Re: Transferring money

Post by thisisreallycomplicated » Tue Aug 14, 2018 11:25 pm

papageno wrote:
Tue Aug 14, 2018 5:50 pm
Four words: get qualified professional help. This is no game for amateurs.
I completely agree with you. But the trick is finding someone who's actually qualified, acts professionally, and is willing and has enough time to help. I've had some really good experiences hiring people, and some really bad ones. What works best for me, is to try and do it myself first. Then if I'm not comfortable with it, I'll try hiring someone.
“Now it’s conspiracy – they’ve made that something that should not even be entertained for a minute, that powerful people might get together and have a plan. Doesn’t happen, you’re a kook, you’re a conspiracy buff!” – George Carlin

thisisreallycomplicated
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Re: Transferring money

Post by thisisreallycomplicated » Wed Aug 15, 2018 5:46 am

There's a lot of good info on this page:
https://www.irs.gov/irm/part4/irm_04-02 ... 2322719600
It includes stuff about "money transmitters" that I think applies to transferwise. I didn't see anything specific for Chilean AFP's, but it talks about similar things in Canada and Mexico:
4.26.16.4.3 (11-06-2015)
FBAR Filing Exceptions

Individual Retirement Account (IRA) owners and beneficiaries, and participants in and beneficiaries of U.S. tax-qualified retirement plans, are not required to report a foreign financial account held by or on behalf of the IRA or retirement plan.
Caution:

This exception is for U.S. plans only. Foreign plans (e.g., a Canadian Registered Retirement Savings Plan (RRSP) and accounts managed by Mexico’s Administrators of Retirement Funds (AFORES) are normally reportable on an FBAR.
I don't know anything about those Canadian and Mexican retirement plans, so they could be a lot different than an AFP. So I'll keep looking for a reference somewhere for an AFP exclusion, unless someone else finds it first. This article talks about different types of plans, and whether or not they're reportable, so it might help:
https://www.taxconnections.com/taxblog/ ... 3Pq0uRQB48
“Now it’s conspiracy – they’ve made that something that should not even be entertained for a minute, that powerful people might get together and have a plan. Doesn’t happen, you’re a kook, you’re a conspiracy buff!” – George Carlin

Britkid
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Re: Transferring money

Post by Britkid » Wed Aug 15, 2018 6:11 pm

I signed up for the Borderless account recently. But I've been waiting a month or two so far without success for the debit card to arrive from the UK in the post so I haven't used it.

I don't even know what FBAR is but do read what Transferwise says about the account, something about it not being technically a normal bank account, and the account numbers being transfer codes or something like that. I'm not sure if that affects you.

THIS PARAGRAPH LOOKS TO BE WRONG OR OUT OF DATE SEE FURTHER DISCUSSION BELOW (EDITED 16TH AUGUST) I am transferring from the UK to Chile and they are limiting me to US$2900 per month or equivalent. It is on a rollng 30 days. If I sent $2899 today, I will have to wait until 30 days from today (or maybe 31 in some cases) to send again. Never mind about single transaction limit, the monthly amount they allow me is lower than what you were told.

One thing to bear in mind is that if you try and send above the limits, they will immediately block the payment as soon as you type the amount. It's not like you send it and later it causes a problem.

I always send less than 1 million pesos per transaction because I always send to my Cuenta RUT and the Cuenta RUT I don't think can accept over 1 million. This means that I have to send 2 transfers per month as I need to send over 1 million each month. So I don't know what the limit is for a single transaction. However I have sent 980,000 or 990,000 at any rate without problems.
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Re: Transferring money

Post by thisisreallycomplicated » Wed Aug 15, 2018 6:49 pm

I did a little more research, and found that the Mexican AFORES system was modeled after the Chilean AFP system. So I'm guessing an AFP wouldn't be exempt from FBAR reporting, based on what general type of account it is. There could be some specific details though, that make it exempt.
“Now it’s conspiracy – they’ve made that something that should not even be entertained for a minute, that powerful people might get together and have a plan. Doesn’t happen, you’re a kook, you’re a conspiracy buff!” – George Carlin

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Re: Transferring money

Post by thisisreallycomplicated » Wed Aug 15, 2018 6:58 pm

Britkid wrote:
Wed Aug 15, 2018 6:11 pm
I signed up for the Borderless account recently. But I've been waiting a month or two so far without success for the debit card to arrive from the UK in the post so I haven't used it.
Does your borderless account have a UK or Chilean address on it? I read somewhere on their site that the debit card is currently only for an account with a UK address.
Britkid wrote:
Wed Aug 15, 2018 6:11 pm
I am transferring from the UK to Chile and they are limiting me to US$2900 per month or equivalent. It is on a rollng 30 days. If I sent $2899 today, I will have to wait until 30 days from today (or maybe 31 in some cases) to send again. Never mind about single transaction limit, the monthly amount they allow me is lower than what you were told.
Those sound like the old limits. Have you tried to send more than $2900 recently? The guy I talked to said they just started working with a different company (bank or whatever) in Chile, that has higher limits.
“Now it’s conspiracy – they’ve made that something that should not even be entertained for a minute, that powerful people might get together and have a plan. Doesn’t happen, you’re a kook, you’re a conspiracy buff!” – George Carlin

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Re: Transferring money

Post by Britkid » Thu Aug 16, 2018 11:57 am

It is a UK address, so what I did is have it sent to my parents, and then to be forwarded on. I even explained to Transferwise that I didn't really live in the UK, and they accepted it - verbally. (This is different to a regular UK bank account, where it is allowed, or at least tolerated, to maintain the account while living abroad but usually you must be in the UK at the time you open it.)
In 2014/2015 I blogged about my life in Chile. http://web.archive.org/web/201601121940 ... age_id=268

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Re: Transferring money

Post by Britkid » Thu Aug 16, 2018 12:12 pm

It looks like you were right, it seems I was giving outdated info. Sorry about that. What I said was possibly accurate as little as a week ago or less - I seemed to recall the transaction I sent then and having to reduce it slightly to get it to go through - and without doubt what I said was accurate in recent months.

I am in Transferwise right now and if I enter 5000 (GDP) in the box it makes no complaint as it normally would but if I enter 6000 (GDP) in the box it says

"Maximum is 4786704"
then further down
"Sorry, but your transfer will take you over per payment limit of 5,659 GBP (7200 USD)."

I also just tried entering higher amounts and the same message kept appearing until I increased it to 999,000 it says

"Sorry, but your transfer will take you over the 30 day limit of 785,980 GBP (1000000 USD). You can only transfer 783,770 GBP today."

So it seems the single payment limit is 7200USD and the 30 day limit is 1,000,000 USD. The above message also implies that you can transfer more than the single payment liimt, and perhaps up to 1 million dollars, in a single day by repeating transactions.

This is beneficial to me; I was constantly running up against the 2900 USD limit even though I send less than 2900 USD per month. Like say I'd send 2900 USD, or just under, on January 10th. Then I'd tried to send the next month the same on February 9th, and it would get blocked, and so then I would forget and send it February 15th, and then the next month I'd be busy mid March andend up sending it March 20th. After about 6 months of that you end up skipping a month and not sending anything which is inconvenient, and then I'd have to go back to cash runs from the ATM to the bank account for one month, so I could reset the payment dates I wanted back to the start of the month. So it looks like I'll be able to avoid that from now on.

Down side is, Transferwise is not very secure, just one password I seem to recall. So chose a good password and consider re-entering your card details every time and not letting it save them. I'm not too excited about the theoretical possibility that a hacker could wipe out half our family savings with a single transferwise transfer.
In 2014/2015 I blogged about my life in Chile. http://web.archive.org/web/201601121940 ... age_id=268

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Re: Transferring money

Post by Britkid » Thu Aug 16, 2018 12:18 pm

I just had a quick look and the check box to save your credit/debit card details (assuming you use that method of payment) is automatically checked. It looks like, that to avoid storing your bank details in their system, you would have to remember to uncheck that box for every single transaction you make.
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Re: Transferring money

Post by thisisreallycomplicated » Thu Aug 16, 2018 3:36 pm

Britkid wrote:
Thu Aug 16, 2018 12:12 pm
It looks like you were right, it seems I was giving outdated info. Sorry about that. What I said was possibly accurate as little as a week ago or less -
Thanks for verifying that. I think this is a very recent change, and they just haven't gotten around to updating the whole website yet.
Britkid wrote:
Thu Aug 16, 2018 12:12 pm
Down side is, Transferwise is not very secure, just one password I seem to recall. So chose a good password and consider re-entering your card details every time and not letting it save them. I'm not too excited about the theoretical possibility that a hacker could wipe out half our family savings with a single transferwise transfer.
An unauthorized transfers might be covered in an agreement somewhere, with your bank and/or transferwise, if you report it quickly. I don't know how easy it is to get reimbursed though.
“Now it’s conspiracy – they’ve made that something that should not even be entertained for a minute, that powerful people might get together and have a plan. Doesn’t happen, you’re a kook, you’re a conspiracy buff!” – George Carlin

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Re: Transferring money

Post by tiagoabner » Sat Aug 18, 2018 1:39 pm

You can also turn on two-step verification, so anyone trying to access it from a PC you haven't verified would need to also have your phone in hand.

The limit used to be $2900 per month while I was in Chile, but it seems it was increased. It still shows as $2900 in their FAQ, though.

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Re: Transferring money

Post by thisisreallycomplicated » Fri Aug 24, 2018 10:09 pm

I probably should start a new thread for this, but I'm posting it here since we already started talking about FBARs for AFPs.

I found this article about FBARs for non-US retirement accounts, that uses Norway as an example:
Exemptions are for Foreign Financial Institutions (FFI), not individuals
https://www.taxesforexpats.com/articles ... rting.html

It says this, but I'm not sure if it's completely accurate, or if it applies to Chile:
Exemption from FATCA only alleviates reporting requirements of foreign financial institutions. The IRS does not grant exemption to the individuals from reporting any non-U.S. retirement accounts on FBAR.
You can find FATCA agreements here, including Norway's and Chile's:
https://www.treasury.gov/resource-cente ... FATCA.aspx

If AFPs do need to be reported on an FBAR, and you didn't know it, I wouldn't panic :shock: I'm guessing penalties would get waived if you follow the correct procedure for reporting them, since it's probably a very common honest mistake.

Anyway, if I can't find something that definitely excludes them, I'll probably include mine when I get above the reporting threshold. Assuming there's no penalty for reporting, if you weren't supposed to :?

I haven't figured out yet, how to report a transferwise borderless account. Or if it even needs to be reported.
“Now it’s conspiracy – they’ve made that something that should not even be entertained for a minute, that powerful people might get together and have a plan. Doesn’t happen, you’re a kook, you’re a conspiracy buff!” – George Carlin

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