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Welcome and thank you for giving me the opportunity to assist you with your tax question.
The W8-BEN would be utilized in your situation, and you would cite Article 17 of the Tax Treaty between the US and Belgium.
Yes. You are correct that you can take the distribution and bring it to Belgium.
A lump sum distribution is the distribution or payment, within a single tax year, of the entire balance. You do not have to combine the funds from the two IRAs. You would simply have two lump sum distributions.
As to where you need to put the money when you get it in Belgium, that is up to you. I cannot advise you what to do with your money. However, my advice would be to research different accounts/plans that are available to you.
Please let me know if you require further information or clarification.
Thank you and best regards.
thank you very much.
About "As to where you need to put the money when you get it in Belgium, that is up to you.", what I meant is if I have to transfer the money directly into some specific type of belgian retirement account in order to qualify for the tax treaty provisions.
If you have the money transferred into some specific type of Belgian retirement account from your US account, that would not be a lump sum distribution, but rather a rollover. From the information in your original question, I was under the impression that you would be taking lump sum distributions from your US accounts to do with as you wish. In any event, neither is a taxable event to you.
Just a short note to thank you for the "excellent" rating. It is most appreciated.
sorry to bother you again, but it is a little hard to believe that indeed we can just not pay any tax.
From the irs website, http://www.irs.gov/Individuals/International-Taxpayers/Pensions-and-Annuity-Withholding
"A nonresident alien can elect exemption from withholding only if he or she certifies to the payer that he or she is not (1) a U.S. citizen or resident alien or (2) an individual to whom Internal Revenue Code section 877 applies (concerning expatriation to avoid tax). The certification must be made in a statement to the payer under penalties of perjury. However, nonresident aliens who choose such exemption will be subject to withholding under Internal Revenue Code section 1441."
It seems to say at the same time you can , however you cannot. Would you please explain their statement?
Thanks for coming back to me with your follow-up question. As I stated previously and based on the information you provided to me, the W8-BEN would be utilized in your situation, and you would cite Article 17 of the Tax Treaty between the US and Belgium. The following are the instructions for W8-BEN for your review. Please let me know if you require further information or clarification on this.
Thank you and best regards,