When is receipt of a W-9 necessary?

[KaJay]

 

Background

A participant in a 403(b)(9) retirement plan has requested a distribution.

·    The participant is a US citizen

·    The participant lives in Peru.

·    The funds would be wired to a bank account in the US.

·    The retirement plan has his SSN on file sourced from both his enrollment app from years ago and his recent withdrawal request form.

Questions:

1. Because his SSN is on file and he indicated on the withdrawal form he is a US Citizen, is there any need for the plan to require receipt of a W-9?

2. If the participant was requesting the funds be delivered outside the US, would there be a need for the W-9?

TIA for your responses.

[Luke Bailey]

On page 3 of IRS "Instructions for the Requester of Form W-9," it says that payments of pensions are not subject to backup withholding, so I would think not in either, case, but I have not easily been able to find the authority for that rule, so will be interested in what others know.