Certify Your Tax Status

Overview: 

Filling out a tax certification form is required to open an IB account.  The forms confirm your tax status in relation to the United States.  Information provided by you may lower or exempt the U.S. tax withholding on your account.

Background: 

This article will help you to:

►Choose the correct certification form                            ►Find your tax treaty benefits

►Fill out and submit your form online                              ►Answer tax certification questions

 

 

 

 

Which Form Do You Pick?

Tax Treaty Benefits

Management of account activity differs for each account type.  IB is a U.S. broker and must follow U.S. guidelines.  3 simple questions help you choose the right form

Some countries have a tax treaty with the U.S.  Find out if you benefit from a lower tax-withholding rate. Tax Treaty Benefit Info

Filling Out The Form

Tax Certification – FAQ’s

The certification form is direct.  Supply basic account information on the true owner of the assets or entity.  Select  W-9 Instructions or W-8 Instructions for help. Seek professional advice for tax questions.  These common questions and answers may help you make an informed decision.  Tax Certification - Frequently Asked Questions

 

 

 

Disclaimer:  IB does not provide tax advice. These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any international, federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor. We recommend that you consult a qualified tax advisor or refer to the U.S. Internal Revenue Service.

 

 

How and When to Use a Direct Rollover

Overview: 

This information is for general educational purposes only.  Individuals should consult with their financial adviser or legal counsel to determine how rollover regulations affect their unique situations.

Generally, an investor changing jobs or leaving the workforce may utilize either a Direct Rollover election to continue their retirement savings outside of their employer-sponsored retirement plan.   Assets distributed directly to your IRA from the retirement plan may qualify as a Direct Rollover.

What is a Direct Rollover?

The Direct Rollover is a tax-free distribution to you of cash or other assets from one retirement plan that you contribute to another retirement plan, including an IRA.  The contribution to the IRA is called a rollover contribution.  The Direct Rollover method transfers the assets directly from the retirement plan (and not to the IRA owner) into the investor's IRA, avoiding the 20% mandatory IRS withholding.  This option to transfer retirement assets has no age limitations.

Eligible retirement plans include:

  • Employer's qualified pension, profit -sharing, or stock bonus plan
  • Annuity plan
  • Tax sheltered annuity plan (section 403(b) plan)
  • Governmental deferred compensation plan (section 457 plan)

Who do you contact first? 

Contact your retirement plan administrator or the human resources office for eligibility and requirements.  The plan administrator is required to provide a reasonable direct method of asset transfer.   Completion of an IRA Rollover Form provided by the administrator may be required, in some cases.  In other cases, the plan accepts an IRA Rollover Form supplied by your IRA's broker.  Therefore, it is important to check with the plan administrator.

Initiating your Direct Rollover through IB 

For those transfers that require a broker-supplied IRA Rollover Form, Interactive Brokers provides a convenient IRA Rollover Form.  Interactive Brokers will forward the request to the plan administrator or broker for processing.  Funds may be transferred by either wire transfer or check directly to Interactive Brokers.

Before accepting an IRA rollover transaction into an IRA, we require that you review your eligibility for the rollover and certify your understanding of the rollover rules and conditions.  The IRA Rollover Form includes the Rollover Form and an IRA Rollover Certification Form.

The Fund Transfers page within the Account Management lets you notify IB of an IRA Rollover deposit of funds into your account.  Select the Funding tab in the header link and choose Deposit Funds in the Transaction list.   In the Method list, select Direct Rollover.  Complete, sign, and return both forms to the Interactive Brokers address on the form.

Contact Customer Service with any additional questions.

 

 

In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this article was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.

Technical FAQs - TWS

 

Can I run TWS on my system?
To ensure that you have an adequate Internet connection and proper system requirements to run TWS, we recommend that you first run the demo system.
 
How do I install TWS?
Find download instructions and the necessary files on the Installation Instructions page.
 
What are the minimum system requirements to run TWS?
Minimum and recommended systems requirements for both Windows and operating systems may be found by clicking here.
 
Should I use the standalone or browser-based TWS?
If you have a slower computer or Internet connection, we recommend that you use the standalone version of TWS. If you use the browser-based version, you can access TWS from any internet PC. The standalone version can only be accessed from the PC on which you installed the application. Otherwise, both require that you install the latest Java Runtime Environment and both function the same way.
 
How do I install/upgrade the Java plugin?
Go to the Java Upgrade Instructions page and scroll down to either the Windows or Mac operating system section. Follow instructions for upgrading the Java plugin. Note that if you want to upgrade to a newer Java version, you must first remove the existing plugin and then reinstall the upgraded version. Video instructions for installing the Java Runtime Environment for the Windows operating system can be found by clicking here.
 
What is a beta release, and how can I use it?
The beta release is a pre-production version of an upcoming release that allows you to actively trade while you test new features. You must deliberately elect to use the beta when you log in and should be aware that you do so at your own risk. Since the beta is under construction until production release, we welcome your input on its performance. The beta will be promoted to production after it has been tested both in-house and externally over a specified time period.
 
How do I know what changes are in a new release?
The login page includes links to both the beta and production release notes. These notes briefly describe new features and problems that have been fixed.
 
How will I know when a new TWS version has been released?
If you are running the standalone version, the update wizard will automatically check for TWS updates each time you log in to your PC. You can also manually check for updates from the Start menu by selecting Programs and then Startup and clicking Check for TWS Updates. Customers running the browser-based version will always get the most recent production release when they log in.
 
How do I reinstall TWS?
First, uninstall TWS by going to add/remove programs and removing TWS.  You can then reinstall TWS from the TWS Software page.
 
Why isn't my username recognized?
You will receive this message for one of the following reasons:
- You are not entering the proper username (check to be sure the Caps Lock key isn't on)
- Your account has not been set up yet
- You've entered your password incorrectly more than 10 times
 
Where can I find more information on using TWS?
Instant help resources include the TWS Release Notes, TWS User's Guide, and the online tutorials. If you still cannot find an answer to your question, contact Customer Service.
 
Who do I contact for help?
IB has two distinct departments that handle specific types of TWS questions.Customer service deals with everything involving trading, accounts, funding and execution. See the Customer Service page on the IB website for contact details.The Technical Assistance Center (TAC) can help you with issues concerning your connection to IB and problems with the software involved. To help you more quickly, please:
 
- Call while you are experiencing the problem
- Have your computer turned on and ready to troubleshoot
- Have your account information ready
 
You can also email us at tac@interactivebrokers.com.  Please include the following information:
 
- Your username and account number
- A detailed summary of the problem
- A timeframe of when the problem occurred or occurs.
- Detailed system specifications if possible, including:

    * the Windows version you are using

    * the version of Internet Explorer or Netscape (include cipher strength)

    * the brand names of any Network Interface Cards installed in the computer

    * your processor generation and speed

    * the amount of memory installed in your computer

    * the type of Internet connection you are using

    * any other troubleshooting you have done on your own or with our staff

 

 

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