401k early withdrawal

Member since 21 February 2020

Bernard_Member21 February 2020 08:49:51

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

See also

Childcare in the US - Guide
Taxes for expats in the USA - 0 Reply
J1 American income + J2 French income - 1 Reply
Tax return form help - 4 Replies
France and US Tax Law for succession/inheritance - 3 Replies
Please help an idiot - tax related - 9 Replies
USA Taxreturn 2019 Dependents - 5 Replies

twostep Serial expat

Member since 01 July 2011

twostepSerial expat21 February 2020 11:23:55

466

I have not come across a waiver for 10% early withdrawal.

Bernard_ Member

Member since 21 February 2020

Bernard_Member25 February 2020 13:21:43

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

twostep Serial expat

Member since 01 July 2011

twostepSerial expat27 February 2020 23:10:28

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.

mugtech ViP

Member since 08 September 2012

mugtechViP12 March 2020 14:53:26

4718

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.

Reliable financial advice

Connect with our financial advisor in the USA for expats wealth management and financial advice.

pat94108 ViP

Member since 11 June 2015

pat94108ViP29 April 2020 12:47:17

1208

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.