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Are Fidelity closing non-resident accounts

Are Fidelity closing non-resident accounts

Old Dec 1st 2017, 3:04 pm
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Default Are Fidelity closing non-resident accounts

I've been keeping my head low wrt my Fidelity 401k/IRA as I am non-resident.

However I just received this in an email from them:
==========
Certify your foreign tax status today

Accounts: *****

Our records indicate you are a non-U.S. investor for whom a foreign tax certification is not on file or will be expiring on December 31. A letter with complete details is available online.
===========

Has anyone else had this message?
Is it the start of the process for closing an account?
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Old Dec 1st 2017, 3:05 pm
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Default Re: Are Fidelity closing non-resident accounts

I haven't had anything from them and that's who my company uses for our employee stock purchase plan.
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Old Dec 1st 2017, 3:41 pm
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Default Re: Are Fidelity closing non-resident accounts

We haven’t received an email.

We have received something similar from Nat West Bank regarding residency status for taxes.
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Old Dec 1st 2017, 3:52 pm
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Default Re: Are Fidelity closing non-resident accounts

Originally Posted by formfill1 View Post
I've been keeping my head low wrt my Fidelity 401k/IRA as I am non-resident.

However I just received this in an email from them:
==========
Certify your foreign tax status today

Accounts: *****

Our records indicate you are a non-U.S. investor for whom a foreign tax certification is not on file or will be expiring on December 31. A letter with complete details is available online.
===========

Has anyone else had this message?
Is it the start of the process for closing an account?
I have a Fidelity account, but then I'm a US resident.

That just reads to me like you should have submitted a W8-BEN form to show that you're a not a US tax resident, and you haven't. It's completely standard, and required by US law. That doesn't in itself imply that they're going to close your account.
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Old Dec 1st 2017, 4:04 pm
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Default Re: Are Fidelity closing non-resident accounts

Originally Posted by Owen778 View Post
I have a Fidelity account, but then I'm a US resident.

That just reads to me like you should have submitted a W8-BEN form to show that you're a not a US tax resident, and you haven't. It's completely standard, and required by US law. That doesn't in itself imply that they're going to close your account.
I have to renew my W8 every few years.
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Old Dec 1st 2017, 4:05 pm
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Default Re: Are Fidelity closing non-resident accounts

Originally Posted by Owen778 View Post
I have a Fidelity account, but then I'm a US resident.

That just reads to me like you should have submitted a W8-BEN form to show that you're a not a US tax resident, and you haven't. It's completely standard, and required by US law. That doesn't in itself imply that they're going to close your account.
I agree, but it does seem that there is some difficulty with Fidelity and non-residents. There was a recent instance here on BE where someone, having moved back to the UK, had his account frozen because he did not have a US address. You should be able to find it in a search.
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Old Dec 1st 2017, 4:59 pm
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Default Re: Are Fidelity closing non-resident accounts

Strange.

I emailed the people at work that deal with our Stock Plan to find out some more information, if any.
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Old Dec 1st 2017, 5:04 pm
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Default Re: Are Fidelity closing non-resident accounts

Originally Posted by BenK91 View Post
Strange.

I emailed the people at work that deal with our Stock Plan to find out some more information, if any.
You're a US resident though. There are some extra filing requirements for non residents.
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Old Dec 1st 2017, 5:05 pm
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Default Re: Are Fidelity closing non-resident accounts

Originally Posted by BenK91 View Post
Strange.

I emailed the people at work that deal with our Stock Plan to find out some more information, if any.
I think the issue is about non-residents. The previous thread was about someone who had been here and (I believe) had a 401K, then moved back to the UK and therefore became non-resident. Sounds like the same situation as the OP in this thread.
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Old Dec 1st 2017, 8:03 pm
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Default Re: Are Fidelity closing non-resident accounts

Originally Posted by MidAtlantic View Post
I agree, but it does seem that there is some difficulty with Fidelity and non-residents. There was a recent instance here on BE where someone, having moved back to the UK, had his account frozen because he did not have a US address. You should be able to find it in a search.
Odd because we haven’t been US residents for the last 4 years but have had no problem maintaining our existing accounts with them.
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Old Dec 2nd 2017, 4:40 am
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Default Re: Are Fidelity closing non-resident accounts

Originally Posted by MidAtlantic View Post
I agree, but it does seem that there is some difficulty with Fidelity and non-residents. There was a recent instance here on BE where someone, having moved back to the UK, had his account frozen because he did not have a US address. You should be able to find it in a search.
This is the thread you were talking about, I believe.

http://britishexpats.com/forum/usa-5...1k-ira-901989/

The only thing similar that happened to me recently was that HSBC required me to send some documents due to the HSBC Safeguard policy.

HSBC Safeguard global homepage | Business
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Old Dec 2nd 2017, 7:24 pm
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Default Re: Are Fidelity closing non-resident accounts

Originally Posted by formfill1 View Post
I've been keeping my head low wrt my Fidelity 401k/IRA as I am non-resident.

However I just received this in an email from them:
==========
Certify your foreign tax status today

Accounts: *****

Our records indicate you are a non-U.S. investor for whom a foreign tax certification is not on file or will be expiring on December 31. A letter with complete details is available online.
===========

Has anyone else had this message?
Is it the start of the process for closing an account?

I'm going through this exercise for all the clients I work with. W-8-BENs expire on Dec 31 three years after signature - we're not closing accounts, just keeping them compliant. Also W8-BENs, both for individuals and entities, were re-issued this year so we're re-papering to take into account the additional data fields.
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Old Dec 3rd 2017, 2:26 pm
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Default Re: Are Fidelity closing non-resident accounts

It was my 401k/IRA that was frozen.
I was happy to leave it like that for a year or so while I dealt with other pressing issues.

However, if it looked like the account would be closed, I had a backup strategy of transferring it to a Roth account, but would have to pay the conversion taxes.

I'm going through this exercise for all the clients I work with.
I assume you work with Fidelity.
Could you explain why non-resident accounts would be frozen?
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Old Dec 3rd 2017, 5:06 pm
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Default Re: Are Fidelity closing non-resident accounts

Originally Posted by formfill1 View Post
It was my 401k/IRA that was frozen.
I was happy to leave it like that for a year or so while I dealt with other pressing issues.

However, if it looked like the account would be closed, I had a backup strategy of transferring it to a Roth account, but would have to pay the conversion taxes.


I assume you work with Fidelity.
Could you explain why non-resident accounts would be frozen?
I should have added a disclaimer - I don't work for Fidelity and have no idea about the internal policies of other investment type entities. I work primarily in private equity. I was addressing the request for documentation to certify tax residency and why it is required by Dec 31, for both expiring W forms and for self certifications for the CRS.
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Old Dec 4th 2017, 2:03 am
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Default Re: Are Fidelity closing non-resident accounts

I’m about to leave the US for a few years. If I change my address with Fidelity (and other banks/credit card isuers) to my parents’ address (also in the US), am I likely to escape hassle?
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