Author Topic: Fidelity IRA distribution to UK-periodic No-no!  (Read 5942 times)

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Offline bdlhome

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Re: Fidelity IRA distribution to UK-periodic No-no!
« Reply #75 on: June 18, 2017, 09:32:38 PM »
there is simply no telling what kind of changes in policy other companies might introduce over the 20 to 30 years you might be expecting to draw distributions from your IRA. For this reason my instinct would be to try to get as much money as you can out over as short a time as possible, simply to get it back to the UK and be completely in control of it.

A very good point, a lot can change in 20 years.

I still have a US bank account, but again you cannot rely on that facility being open to you indefinitely as a non-resident. Who knows what policy changes may occur over the next 20 years!

From what I've read, I possibly have one of the worst banks for overseas customers, Chase.

I should probably start another thread on this but I also have a company I founded in 2012 which is an S corp that I will also have to do something with as shareholders must be citizens or residents.


Offline Hass

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Re: Fidelity IRA distribution to UK-periodic No-no!
« Reply #76 on: June 20, 2017, 09:04:17 PM »
I am considering moving my IRA-Roth account to Schwab. Main reason: Schwab have no problem allowing Automtic Withdrawals to persons living outside the US.  Schwab will accept Fidelity funds. My question is: does anyone have experience with Schwab which you can share. Appreciate any advice.

Offline bdlhome

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Re: Fidelity IRA distribution to UK-periodic No-no!
« Reply #77 on: June 22, 2017, 11:06:41 PM »
I am considering moving my IRA-Roth account to Schwab. Main reason: Schwab have no problem allowing Automtic Withdrawals to persons living outside the US.  Schwab will accept Fidelity funds. My question is: does anyone have experience with Schwab which you can share. Appreciate any advice.

I'm also interested in any real-world experience.

I've spoken to Fidelity at length today and on the company pension (that they administer) it appears I'm fine. They have a separate department who appeared very knowledgeable and said it is very usual to have non-residents and the pack I would receive would include W-8BEN etc and they would follow it and no problems as a non-resident.

However, with the 401K I was passed around and called back by various experts etc and I'm not much wiser. What I've been told is that my current company 401K plan doesn't allow automatic withdrawals even for US residents. I was told I would be able to make withdrawals as a non-resident by phone/online but they would be subject to the automatic 30% withholdings regardless of W-8BEN.

Offline nun

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Re: Fidelity IRA distribution to UK-periodic No-no!
« Reply #78 on: June 23, 2017, 12:22:04 PM »
You might want to check with other providers like Vanguard, Schwab etc. and then roll the 401k over to an IRA with them......assuming you are still in the USA and can open an account.

Offline bdlhome

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Re: Fidelity IRA distribution to UK-periodic No-no!
« Reply #79 on: June 24, 2017, 04:02:38 AM »
You might want to check with other providers like Vanguard, Schwab etc. and then roll the 401k over to an IRA with them......assuming you are still in the USA and can open an account.

Thanks, yes still in the USA and next year would be the earliest for leaving.

That(rolling from 401k to IRA) is the plan, although as has been the case with Fidelity they can say one thing and then do another.  It would be great to hear from anyone who is drawing from Vanguard or Schwab  as a non-resident. I know even then the rules may change again before I come to make withdrawals but anything is better than what appears to be the case with Fidelity.

Offline bdlhome

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Re: Fidelity IRA distribution to UK-periodic No-no!
« Reply #80 on: September 22, 2017, 04:23:45 PM »
I am considering moving my IRA-Roth account to Schwab. Main reason: Schwab have no problem allowing Automtic Withdrawals to persons living outside the US.  Schwab will accept Fidelity funds. My question is: does anyone have experience with Schwab which you can share. Appreciate any advice.

Did you ever do the move? On paper Schwab seems to be the way to go but like you, it would be great to hear from others that have made the switch. Would also be great to hear from other Schwab customers residing in the UK that are now at retirement age and taking periodic withdrawals from their IRA accounts.

Offline Hass

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Re: Fidelity IRA distribution to UK-periodic No-no!
« Reply #81 on: September 22, 2017, 05:36:34 PM »
No, I did not make the move yet. I received Schwab forms for setting the IRA account, and for the withdrawal/distribution. To make sure that Schwab do indeed offer "Periodic Automatic Withdrawal plan for non-US persons with Foreign address", I have set up a meeting with Schwab advisor at their London office in mid-October.
I will post my findings after the meeting.

Offline Clare

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Re: Fidelity IRA distribution to UK-periodic No-no!
« Reply #82 on: September 24, 2017, 07:35:37 PM »
I am a UK/US dual citizen, resident in the UK, and I have a Fidelity IRA that i've made several withdrawals from over the last year. I have a US bank account that I transfer the funds to, but I haven't had any problems as yet, and I can choose my IRS withholding amount (including zero).

Offline Hass

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Re: Fidelity IRA distribution to UK-periodic No-no!
« Reply #83 on: September 24, 2017, 09:46:16 PM »
I agree that one can make withdrawals (online or by phone) any time without problem. My issue with Fidelity is their reluctance to allow the setting of " Automatic Withdrawal Plan" so that periodic (monthly, quarterly etc..) distribution is made without having to contact them every time. They allowed that when I was resident in the USA, but would not allow same for Foreign person with foreign address.

Offline bdlhome

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Re: Fidelity IRA distribution to UK-periodic No-no!
« Reply #84 on: October 21, 2017, 04:36:33 AM »
No, I did not make the move yet. I received Schwab forms for setting the IRA account, and for the withdrawal/distribution. To make sure that Schwab do indeed offer "Periodic Automatic Withdrawal plan for non-US persons with Foreign address", I have set up a meeting with Schwab advisor at their London office in mid-October.
I will post my findings after the meeting.

Thank you, I really appreciate letting us know.

Offline Hass

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Re: Fidelity IRA distribution to UK-periodic No-no!
« Reply #85 on: November 07, 2017, 10:43:45 AM »
Schwab is no different! I went through Schwab " Request for IRA Distribution" form. No where does it offer "Automatic Withdrawal Plan" via Recurring Securities Distribution. Confirmed same at a meeting with Schwab at their London office.  In other words one has to make the disposal of securities  either online or via the phone.  That is the same as Fidelity! Sorry to disappoint you. I am also disappointed. I have not explored Vanguard...but I do not have much hope in them being different. Does anyone have experience with Vanguard?

Offline colin61

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Re: Fidelity IRA distribution to UK-periodic No-no!
« Reply #86 on: February 02, 2018, 11:31:49 AM »
just replying to flag my interest as I cannot see how to subscribe to a thread.

Offline durhamlad

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Re: Fidelity IRA distribution to UK-periodic No-no!
« Reply #87 on: February 02, 2018, 04:19:06 PM »
just replying to flag my interest as I cannot see how to subscribe to a thread.

At the top and bottom right corners of each thread are 4 buttons. The first button is "Reply" the 2nd button is "Notify", which is what you click to get notifications on the thread. (same as subscribe)
Adventure before dementia

Offline bdlhome

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Re: Fidelity IRA distribution to UK-periodic No-no!
« Reply #88 on: Yesterday at 08:08:24 PM »
Schwab is no different! I went through Schwab " Request for IRA Distribution" form. No where does it offer "Automatic Withdrawal Plan" via Recurring Securities Distribution. Confirmed same at a meeting with Schwab at their London office.  In other words one has to make the disposal of securities  either online or via the phone.  That is the same as Fidelity! Sorry to disappoint you. I am also disappointed. I have not explored Vanguard...but I do not have much hope in them being different. Does anyone have experience with Vanguard?

Thanks for the update, as you say disappointing but at least we know.