Roth IRA and beneficiary
Can you please tell me if my Roth IRA beneficiary must have some kind of US status (i.e. US citizen or Green card holder and/or residing in the US)?
Can you please tell me if my Roth IRA beneficiary must have some kind of US status (i.e. US citizen or Green card holder and/or residing in the US)?
Permalink Submitted by Alan - IRA critic on Wed, 2013-01-16 02:40
You can name a foreign IRA beneficiary, but the tax treatment on distributions depends on the tax treaty between the US and other country. Generally, mandatory federal tax withholding on distributions is 30%. Further, without a US SSN, the beneficiary cannot stretch the IRA and would have to take a lump sum distribution when claiming death benefits.
Permalink Submitted by Michael Boster on Sun, 2013-01-20 02:14
Alan: with regard to a foreign beneficiary, in the specific case of a Roth (as per the OP), and assuming that the five year rule has been met, any distribution to the bene, including gains, upon the passing of the account holder would not be considered income, right, and therefore not subject to withholding or taxation of any kind? Thanks. edit: clarification of “including gains” added
Permalink Submitted by Michael Boster on Tue, 2013-01-22 12:11
Looking forward to your response.
Permalink Submitted by Mark Lopez on Thu, 2013-01-24 12:21
I was not knowing that in including gains the account holder is not considered as the income. I would like to know what else have been added in the including gains..?http://www.zippd.com.au