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Old 04-28-2016, 10:41 AM
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Join Date: Apr 2016
Posts: 12
IRA and W8BEN

Hi. I have IRA account in USA. I am currently residing in India.
I was asked to fill out W8BEN form for foreign tax status.

I had done a withdrawal from my Roth IRA. Now what I withdrew ($350) was penalty free because I have contributed more. So it was like distribution of contribution. I saw a withholding tax rate of 30% applied ($150 on $500, with $350 given to me).
So I am wondering why again a withholding on a post tax account (because this is already after tax money). Also as a foreign tax status, indian resident, should I not be exempt from withholding from a IRA account.

I need help to see if I filled out the W8BEN form correctly and to avoid withholding tax as much as possible.



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