Nonresident Alien Death Beneficiaries
TIRA death beneficiaries are nonresident aliens (Mexican citizens) without US Social Security Numbers
Will distributions be subject to 30% US income tax withholding?
If it’s a qualifying Roth IRA will there be any mandatory US withholding?
Any other practical issues anybody has experienced?
Thanks
Permalink Submitted by Jose Morales on Tue, 2012-02-28 16:42
You would look up the withholding tax rate from the tax treaty table on publication 515, which can be found here: http://www.irs.gov/pub/irs-pdf/p515.pdf
They will have to apply for an ITIN, however the tax treaty rate for payments from pensions and annuities appears to be 0%.