Success getting 15% Treaty Rate from US 401k/IRA withdrawal?

[jtserbinski]

Hi,
I've haven't had any luck getting my plan providers (Schwab,Fidelity) to commit to a withholding rate of 15%. On the phone support they say just file W-8BEN and depending on when I call I get different answers, usually one of the following two: (1) "the back office will do the correct withholding", or (2) it's 30%. I guess part of the problem is there is no IRS definition for what is a periodic withdrawal. Any one have any luck recently getting an answer from their plan holder, getting a 15% withholding and what is considered a "periodic withdrawal"?

[formerpatriot]

My wife is having the same problem with her Inherited IRA at Vanguard. She started a periodic withdrawal schedule in 2025 at the rate of 2 withdrawals per year, one in January and one in July. Vanguard acknowledges that it fits the definition of “periodic withdrawals” and it acknowledges that the tax treaty calls for 15% withholding. But they say “We do not apply the treaty for Canada and the UK”. So they withheld 30%.

My wife will file a 1040-NR in an attempt to recover the extra 15%. The following YouTube video by Jason D Knott is very useful:
https://www.youtube.com/watch?app=desktop&v=VGU1C3IXAQM