529 Plan Distribution Taxable Withholding Rate - Non Resident Alien

[bluesi2004]

If a nonresident alien living in Sweden with a 529 plan in the US redeems the account as a non qualified withdrawal, I am trying to determine whether the taxable portion of the withdrawal (the earnings) would be subject to the 30% NRA withholding rate? I was informally told that their is a tax treaty between the US and Sweden that may provide an exemption from  NRA withholding but can’t figure out which section (If any) of the treaty would apply. Thanks.

[Critter-3]

If the person taking the distribution knows of a treaty tax exemption then have them provide the ruling to you ... why do you have to figure  this out  yourself.   

If they cannot provide it then do the withholding and let them file a 1040NR return to get the excess withheld taxes back.

[Hal_Al]

For treaty provisions, see: https://www.irs.gov/businesses/international-businesses/sweden-tax-treaty-documents

More relevant than the treaty is what will the plan administrator do.  Typically, the plan owner has to tell the plan administrator whether the distribution is qualified or not.  If non qualified,  you are then  asked if you want to withhold more than the standard amount.