Withholding USA Tax on a Roth IRA inherited UK Res

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Do you have to pay 30% witholding tax on an inherited Roth IRA - the receipent of the inheritance is a UK citizen 

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By richard thomas
21st Feb 2024 09:18

Why do you think would anyone on a UK based web forum would know the answer, especially with the exiguous set of facts you’ve imparted.

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By Truthsayer
21st Feb 2024 12:42

No, I don't have to, but thanks for asking.

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By David Treitel
23rd Feb 2024 09:57

There are several issues here:
1. An IRS custodian may choose to withhold out of an abundance of caution
2. An IRA custodian may be missing data such as an ITIN
3. Withholding - if any - would not be the final liability
4. Inherited Roth IRAs would need to be transferred to a beneficiary IRA. In practice it can be tough to find an IRA custodian who will open an account for a UK resident
5. UK tax issues will need to be considered
Professional advice would be prudent.

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