Foreign Citizens Inherits Roth IRA
My client passed away and her Roth IRA will go to her 3 siblings. 1 is a canadian citizen and 2 are citizens of the philippines. my back office is not helping much. if anyone can help me with this situation I would appreciate it:
my back office wants them to complete a W8 BEN but can’t help me with this form and I can’t get anyone at the IRS to answer the phone. here are my questions:
http://www.irs.gov/pub/irs-pdf/fw8ben.pdf
1. do they need a ITIN (line 5) from the IRS or can they leave this blank on the W8 BEN form?
2. is line 6 referring to their countries version of a SSN?
3. How do they determine how much tax should be withheld if any?
Thanks,
Brent
Permalink Submitted by Jose Morales on Thu, 2015-09-17 19:01
1. yes they need an ITIN 2. Yes, it is referring to their country’s version of an SSN 3. http://www.irs.gov/Individuals/International-Taxpayers/Tax-Treaty-Overview
Permalink Submitted by Brent Woolsey on Fri, 2015-09-18 18:31
thanks for your response. does anyone know if 0% can be withheld for taxes since it is from a Roth IRA? I can’t find anything specific about Roth IRA’s in the Canandian tax treaty. All I can find is 15% withholding can be done for traditional IRA’s.