I have a situation in which the participant died and his beneficiary lives in Mexico and does not have a SSN. Should we process the cash distribution as we normally would and just use the deceased SSN on 1099? Or require the beneficiary to get a tax id#? Looking for a practical solution and there seems to be numerous posts on the issue but not with this specific example.

Thanks,

For non-resident aliens, you file Form 1042-S. Not Form 1099-R.

NRAs can apply for an ITIN

If my memory serves me right.. the treaty rate does not apply if the beneficiary does not provide a TIN, which means that the withholding would be 30% instead of the 0% that applies to Mexico.

See also Form W-8BEN.

These may help :

Pub 515 http://www.irs.gov/pub/irs-pdf/p515.pdf

1042-s instructions http://www.irs.gov/pub/irs-pdf/i1042s.pdf

1042-s Form http://www.irs.gov/pub/irs-pdf/f1042s.pdf

ITIN http://www.irs.gov/individuals/article/0,,id=96287,00.html