Non US citizen IRA Beneficiary
Client (US citizen) lives overseas in Germany. Currently retired and has all qualified monies in a Traditional IRA in his name. He would like to leave those monies to a friend (a German citizen) in event somethings happens to him. What would the tax consequences be of this? Client in no way has estate issues. IRA is literally the only asset owned by client.
Permalink Submitted by Jose Morales on Tue, 2009-03-03 21:36
I can’t tell you what the tax consequences would be, as I am not a tax advisor. The beneficiary would have to apply for an ITIN and any distribution to the beneficiary would have to include federal withholding at the amount set by the US tax treaty with the country of residence for the beneficiary.
Permalink Submitted by Rick Disharoon on Wed, 2009-03-04 13:37
UR, thanks for your time in a response. You have any resources that you know of where I might be able to find that tax bracket that goes along with the tax treaty with Germany?
Permalink Submitted by Jose Morales on Wed, 2009-03-04 16:21
You should be able to find everything you need here in [url=http://www.irs.gov/pub/irs-pdf/p901.pdf%5DIRS Publication 901[/url].