[ofmc1]

I saw many different response about this but nothing clear (to me at least).
Does anyone know the answer to following specific question:

1. If a prior USA resident leaves USA and is no longer citizen nor resident, how will his withdrawals from an IRA and a KEOGH be treated?

a. Is there any distinction between how IRA and how KEOGH are treated?

B Are withdrawals treated as "effectively connected" income according to Publication 519 and thsu the person is subject to taxes as if he were a USA resident and can claim deductions )eg-charitable donations, etc) against that income?

c. Or are withdrawals treated as other US income of a non USA tax resident and subject to a flat 30% tax rate with no ability to take deductions?

d. do tax treaties apply if the person is resident in a western european country (eg- UK or Spain or Germany) where apparently the treaty states there I sno US wihholding nor taxed payable on pension withdrawals?

Thanks

[AtlantaTaxExpert]

For non-residents, IRAs are taxed at a flat 30% unless the tax treaty calls for a lower rate. No deductions are allowed.

The KEOGH may be treated differently; it depends if the tax treaty defines the KEOGH as a pension or not.

[ofmc1]

Thanks for the response.
Interesting about not being "connected income" although was contributed (and earned) while being a USA resident.

Do you know if tax treaty reduces just withholding rates or also US tax liability?

Thanks

[AtlantaTaxExpert]

The treaty does BOTH (reduce withholding and tax liability).

[ofmc1]

Thanks
The tax treaties refer to pension usually. Do they cover IRA's as
I am not sure an IRA is legally a pension ?
Tks

[AtlantaTaxExpert]

Some treaties (like the Canadian treaty) specifically identify IRAs as treaties. Other do not.