W8 or W8BEN?

dowager · Post by **dowager** » Thu Jan 13, 2011 1:46 pm

I am living currently in Canada. I had an employment in US, and has recently been notified that I could either leave my 401k as is, or roll it over to a IRA. I made an application to roll it over to an IRA, but the service provider has now requested for a Form 8 or Form 9 to be filled. Since I am not in US, I believe W8 is relevant, but should I fill out W8 or WBEN? Thanks.

The other question is whether as a non US resident, can I roll it over to a Roth IRA, and if yes, what is the benefit of doing so? Thanks.

nelsona · Post by **nelsona** » Thu Jan 13, 2011 3:54 pm

Since there no longer is a form w-8, then W-8 BEN will have to do.

nelsona · Post by **nelsona** » Thu Jan 13, 2011 3:56 pm

As to Roth, you should NOT rollover 401(k) or IRA to Roth if you live in Canada as it essentially destroys the Roth.

You should have done this before leaving US. Now, I would suggest you wait until you perhaps move back to US.

dowager · Post by **dowager** » Thu Jan 13, 2011 8:23 pm

Nelsona, luckily I read your forum again, as I was not aware of the conversion problem of Roth for NR. I was well aware of your advice to convert to Roth before I left, but did not have the time to do it as I left in a hurry.

Which is better? Leave it in 401k or convert to an IRA? What are the differences? Thanks.

dowager · Post by **dowager** » Thu Jan 13, 2011 8:24 pm

I do not think I will be moving back to the US in the future. Does this change your advice?

nelsona · Post by **nelsona** » Fri Jan 14, 2011 8:29 am

No it does not. There is no difference between 401(k) or IRA, although IRA will generally be with a plan with many more investment options.