Menu
Expat.com

401k early withdrawal

Post new topic

Bernard_

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

The US taxation systemState Sales Tax Holidaysgiving up ‘domicile of choice', UKHow to apply for an SSNTerm Life Insurance taxation when no longer a US Tax resident
twostep

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

Bernard_

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

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

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.

pat94108

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.

Articles to help you in your expat project in the USA

  • Dating in the USA
    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 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 in the United States

    Marriage is a contract that commits two people emotionally, legally, and materially. In the US, both same-sex and ...

  • The work culture in New York
    The work culture in New York

    The work culture in New York can significantly vary according to the type of structure, the size of the company, ...

  • Leisure activities in New York City
    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. ...

  • Using phones in the USA
    Using phones in the USA

    Staying connected with loved ones while in the United States  – not to mention all the other reasons ...

  • Obtaining Permanent Residency in the U.S.
    Obtaining Permanent Residency in the U.S.

    For millions of people, the prospect of living and establishing a life in the USA is a dream. Regarded as the land ...

  • Working in Los Angeles
    Working in Los Angeles

    California has long been known as a hub for innovation and creativity in the US, and the state's major cities, ...

All of the USA's guide articles