you answered 3 years ago to someone:
"This means that what you will really be doing is a Lump Sum distribution
from the US
IRA. The US-UK tax
treaty does cover this subject. Article 17 of the treaty deals with pensions
. Since the IRA was generated with money from a 401K it would fall under pensions for tax treaty determination.
Under the previous treaty, a lump-sum payment from a pension scheme was taxable only in the country of residence. So if an individual
moved from the US to the UK before receiving a lump sum from a US pension scheme, they would be taxable on the lump sum neither in the US (because of the treaty) nor in the UK (which does not tax lump sums anyway).
The treaty was changed and now the individual will only be taxed in the country where they are resident at time of distribution.
of the taxes in the US would be the real problem. Could the W8 form
cover this with the understanding that you are requesting no withholding based on Tax Treaty provisions under Article 17? Here is a link to the W8 Form:
I have the same problem, but mine is the US-Belgian tax treaty. I think I also can do the distribution without withholding and bring it here to Belgium, right?
Two questions: 1. what is a lump-sum distribution? I have two IRAs with two different investment companies, do I have to join them first?
2. When i get the money in Belgium, where do I need to put it?