ConfusedDaughter

Hi
My father worked in the US for 10 years, he was there on an employee work visa and when he retired at 60 he returned to the UK. He had an IRA with Morgan Stanley and when he died a couple of years ago this was transferred into my mother's name. We have just received a letter from MS saying that they will no longer service the account as it has become too complex to do so. We have 60 days from the date of the letter (which took a month to reach us in the UK) to arrange for it to be transferred to another institution, if we don't do this they will liquidate the account. My understanding as my mother does not live in the US transferring it to another institution as an IRA is not going to be possible. Ideally what we would like to do is transfer it to the UK, I've been told that MS would withhold 30% for tax as no tax has been paid on it, is there anyway we an avoid this, she has always filed a US tax return as she receives money from a US company pension and a state pension. Has anyone got any advice on the easiest way to deal with this.

robin1234

You can simply cash it out I assume. (I assume that's what you meant when you said, transfer it to the UK.) Yes, they would be required to withhold the 30% withholding I think - but then, when your mother does her 2018 taxes, that amount withheld will be a credit against whatever her tax liability is.

durham_lad

+1

I think that is probably the only option.

Benson55

get hold of a financial expert in the US and pay them for the advise you need is best.