Nonresident alien as beneficiary

[Guest halka]

This is probably a routine occurrence for some of you, but new to me. A 401k participant died w/ his designated beneficiary being a sister living in and a citizen of Vietnam. I’m looking for a step-by-step for any special income tax filing/withholding/treatment required for the plan distribution to a Vietnam citizen. Any leads greatly appreciated. THANKS

[Harwood]

Try Form 1042-S and IRS Publication 515 for starters

[Guest jdw]

The beneficiary or plan also needs to complete a Form W-7 to create an ITIN, then the beneficiary can complete Form W-8BEN to possibly avoid withholding, if Vietnam has a tax treaty with the U.S. My old copy of Pub. 515 does not list them. If no treaty, I think you withhold at 30%.

[Guest halka]

MANY THANKS for the assistance, Harwood & jdw.