nun

Ignoring W-8BENs is common for 401k and IRA withdrawals, The default withholding required by the IRS on pension payments sent overseas is 30% and the account administrator tends to withhold that to comply with IRS rules as they'd rather annoy the owner of the 401k than the IRS. Persistent filing of W-8BENs and explanation of the 0% withholding under the treaty might eventually get them to change things. But until that happens a UK resident receiving a 401k distribution as income should pay the full amount of tax due to HMRC and then file a 1040NR claim zero tax under the treaty and a refund of the 30% withholding.

pharmer9

I won! My financial provider has finally agreed that they do NOT need to make withholding on my IRA distributions. :-)

Vadio

Great result!

J.JsOH

Congrats.
As Nun said, 30% wht is default position and it seems the provider just hopes the client goes away so that the provider doesn't have to make any effort.

That attitude isn't limited to US, I had old UK private pension due to start last month, despite having good initial early communications, the date passed, no £, no communication. Chased them and excuse was they waiting on someone else to do something else etc etc. Idle buggers.