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Beneficiary not in US/US citizen

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has anyone had a situation where the named beneficiary is not a US citizen or resident?  I'm not sure what to use for a taxpayer ID number or whether I should be advising this person that they will have to file a US income tax return, as the funds being paid out are coming from a qualified retirement plan (not individual) where the participant lived/worked in the US and had an SSN.  unfortunately he passed away unexpectedly following retirement and we didn't have a chance to pay him out directly.  now dealing with a family member outside the US who is non-english-speaking and I have no direct contact information other than thru the prior employer.

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that person will need to file for an individual taxpayer identification number (ITIN) which the plan will need prior to payout

https://www.irs.gov/individuals/international-taxpayers/taxpayer-identification-numbers-tin#:~:text=An ITIN%2C or Individual Taxpayer,NNN-NN-NNNN).

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services


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And should complete a W-8BEN. You will need an original and based upon the country, they may have rights to invoke the treaty between their country and the USA for withholding. Also, if I remember right, the withholdings are done differently than the normal fed withholdings you would do.

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There is a completely different tax-reporting and tax-withholding regime about non-U.S. payees.

The bank, trust company, or insurance company that serves as a directed trustee, custodian, or other payer might help with more information.

Also, some recordkeepers have software with coding for these points.

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania



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