Schwab IRA trading restrictions

I have recently moved to the UK after 20 years in the USA (dual citizen) and I have an IRA at Schwab and a small Roth.  Now that Schwab know my new address they want me to move my accounts to Schwab International but have told me that i can no longer trade US mutual funds or etfs in these accounts due to regulations.  This also means that dividends etc can’t be reinvested in the funds they came from.  They have to be received as cash.

1.  Has anyone else come across these regulations?
2.  Interactive Brokers say there is no problem in buying US funds as i am a US citizen. Does anyone have experience of being able to trade freely at IB?

Thanks

Myself and my wife each have our IRAs at Vanguard, plus my wife has an after-tax account with them which includes an etf and a money market account. They have our UK address and phone numbers and we’ve had no issues reinvesting dividends and end of year capital gains distributions. For my wife’s IRA it automatically reinvests and for mine I have them going into the IRA money market fund and I then decide on how much to distribute and how much to reinvest each year.

The only issue I have is that when making making withdrawals from my Roth IRA, IRS regulations require a minimum tax withholding of 10% for USCs living abroad even though all distributions from my Roth are tax free due to my age and length of time I have held a Roth. If I had a US address then no mandatory Roth tax withholding. We usually transfer out the dividends from my wife’s taxable account and there is no mandatory withholding required even though that is all taxable.

I have US Roth IRAs with Interactive Brokers. As a UK resident, they will not allow me to buy US ETFs (due to the lack of a KID/KIID). Unless you are an elective professional investor, I expect that will be the case as soon as they realize you have a UK residency.

That said, IBKR has no problem with me buying UCITS ETFs within my IRA, and since they're inside the IRA wrapper, the fact that they're PFICs doesn't matter. So I just buy EU funds in my IRA at IBKR and all is good.

Thank you both.  Some useful info there for me to chew on.