Hello,
I lived in the us for 7 years and had a 401k with my employer. I kept this 401k when I moved out of the US. Recently, my employer has been bought and discountinued the 401k so I had to withdraw all the mo,ney in it.
(Leaving abroad and being a foreign Citizen I could not open an IRA).
There was a 30% withdrawal but I am not sure if I also have to pay an extra "early withdrawal fee" (I am not yet 55), any of you has encountered this situation and know what to do?
Thank you
401k early withdrawal
2
466
I have not come across a waiver for 10% early withdrawal.
2
Thank you twostep. So that means I have to do a file a complete tax return with irs ( even though I don't leave nor am a Citizen/green card) or is there just a form (and money!!) to send?
Thank you again
Bernard
466
I am not an accountant/ CPA. As far as I understand it you have to file and you may be able to get all or some back depending on your home country.
4347
When you said there was a 30% withdrawal, did you mean 30% tax withholding? You will have to file an income tax return for the year in which the 401k was liquidated as a non-resident alien and you could owe or get a refund depending on the gross amount of your distribution.
1100
A few things: by 30% withdrawal, you're probably talking about the tax withholding. As far as the 10% penalty fee, I personally never had to pay it when I withdrew money from my 401k when I was no longer an employee with that company and I did it a couple of times.
Subscribe to this topic
Articles to help you in your expat project in the USA
The US taxation system
The United States presents numerous opportunities for those seeking to emigrate, be it through business ventures ...
State Sales Tax Holidays
In the United States, some of the individual states started “Sales Tax Holidays” a few years ago.
Dating in the USA
Dating anywhere in the world can be nerve-wracking, but dating in a foreign country can be especially ...
The American lifestyle
The United States is a vast country that is made up of a diverse group of people. Life, landscape, and culture can ...
Marriage in the United States
Marriage is a contract that commits two people emotionally, legally, and materially. In the US, both same-sex and ...
Leisure activities in New York City
Regardless of the season or the weather, New York is a city that remains both vibrant and lively all year round ...
Open a bank account that suits you
Discover the best international banks to manage your money securely.
"