Discussion:401k paid to non US individual
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Discussion Forum Index --> Tax Questions --> 401k paid to non US individual
| 16 August 2007 | |
| Individual is a citizen of Spain. Came to US to go to school and after worked for GE for about 7 years. She returned to Spain 2 years ago and no longer works for GE. She wants to take the funds she contributed to her 401k. Is she subject to the 30% withholding on the funds? They gave her a Form 8BEN, in Part II, Box 10, does she need to complete this section?
If so, what article of the treaty with Spain does she claim and what withholding rate? | |
| 16 August 2007 | |
| See Treaty Article 20. May be totally exempt from US taxation. | |
| 16 August 2007 | |
| Although you may not know it, you are actually asking 3 quite different questions:
1. Is withholding required? 2. Is the payment taxable or subject to the 10% excise tax, and is a 2007 tax return required? 3. What is the tax position in Spain? You'll need to answer all 3 for the client to get complete advice and yes they are tough questions, which would take a good deal of research time! | |
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