Fed Wthd on foreign national

[dmwe]

A former Japanese owner of a business has now moved back to Japan and wants his balance in the DC plan wired out. Is there an exception to the withholding rules in this case?

Someone referenced a US/Japan treaty that gave us the ability to ignore withholding. Any ideas?

[E as in ERISA]

See this guide http://www.irs.gov/pub/irs-pdf/p515.pdf Especially Japan on table on page 35. Not sure, but I think that these are the general rules-- If you get a W-8BEN, then you can possibly reduce to 0 if they are a treaty country that exempts them. If they don't give you the W-8BEN then you use US withholding rates even if even treaty country with exemption. If not treaty country, use 30%.

[dmwe]

Thanks. That's very helpful.