FATCA wire transfer 30% with holding

As a UK/US dual citizen resident in the UK I will need to transfer money from US retirement accounts to my UK bank. Obviously I'll need to pay income tax on that money, apart from ROTH withdrawals. Will the new FATCA rules require my mutual fund company to withhold 30% tax from that transfered money?

The new FATCA rules will not change the amount required to be withheld from your US retirement accounts.  Typically, 20% is withheld and FATCA will not change this.

The new FATCA rules will not change the amount required to be withheld from your US retirement accounts.  Typically, 20% is withheld and FATCA will not change this.

This is not necessarily true.  FATCA does not change other withholding rules but if the UK bank chooses not to be a participating FFI then the US paayor would be required to withhold 30% under FATCA.

In practice the UK bank may simply stop offering accounts to persons it identifies as US persons.

A U.S. retirement account will be making a distribution to a U.S. citizen and the U.S. retirement account will report that payment on a Form 1099 to the IRS and a copy will be sent to the U.S. citizen for reporting on their tax return.

The new 30% withholding rules under new section 1471(a) apply to certain payments "to . . . foreign financial institutions . . . ."  In the scenario posed above, there has been no payment "to" a foreign financial institution.  Instead, the payment was to a U.S. citizen.  If the U.S. citizen directs that the payment be wire transferred into a foreign bank account owned by the U.S. citizen, there is still no payment "to" the foreign financial institution.  For instance, if my employer deposits my salary into my Bank of America bank account, the payment is to me and not to Bank of America. 

From a policy perspective this makes sense.  One of the primary purposes of the FATCA rules was to make sure that payments to U.S. citizens are reported on Form 1099 (or other applicable form) so that it is more difficult for U.S. citizens to hide their income.  Here, the distribution from the U.S. retirement plan will be reported on Form 1099 by the U.S. retirement plan and there is no need for the foreign bank to report anything.  If an FFI were to report anything with respect to this payment, there would be duplicate reporting.

The new FATCA rules will not change the amount required to be withheld from your US retirement accounts.  Typically, 20% is withheld and FATCA will not change this.

Things are in flux at the moment and how FATCA will be implemented is not really known. So my question was a way of starting a discussion on an important subject for all US expats.

However, I'm with Guya on this one.

IMHO as things stand it seems that the level of communication required between banks on each transaction to see if FATCA withholding is required is impractical and the consequences of not withholding or not reporting are so great that withholding and reporting will happen as the default or the FFI will simply exclude US customers. I'm hoping that countries with good reporting mechanisms and comparable tax structures to the US will be excluded from FATCA. I mean who goes to the UK, France, Canada, Germany etc to avoid taxes?

I don't agree with your logic about the payments going to a US citizen rather than the FFI either.

Also right now I though a US citizen could use W-9 and W-4P to get the withholding to the appropriate level.

Here's another potential issue with FATCA. I'm one of the executor's of my mother's will. She's a UK citizen and I'm a UK/US dual citizen living in the US. As I'll have signature authority over her accounts when the worst happens I've researched the FBAR filling requirements and Form 3250. However, what happens if the FFI where my mum has her accounts isn't FATCA compliant?