Jump to content

Beneficiary not in US/US citizen


Recommended Posts

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.

Link to comment
Share on other sites

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

kprell@bpas.com

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

Link to comment
Share on other sites

  • 2 weeks later...

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...