Charity as IRA Beneficiary
Will a non-US charity that is qualified under 501(c)(3) be taxed on distributions from an IRA if it is the named beneficiary?
Will a non-US charity that is qualified under 501(c)(3) be taxed on distributions from an IRA if it is the named beneficiary?
Permalink Submitted by mk foss on Tue, 2013-02-05 18:26
Normally the 501(c)(3) status is reserved for U.S. charities. Payments of retirement benefits to foreign addresses are subject to withholding of U.S. tax. The charity would have to file some sort of refund claim to recover the withheld tax, if it is exempt under 501(c)(3).
Permalink Submitted by Art Canter on Tue, 2013-02-05 21:14
Thanks for the withholding angle. I think a foreign based 501c3 organization can claim exemption from withholding from my perusal of Pub 515 and Forms W-8BEN and W-8EXP.