turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

I cashout my roth 401k. Our HR explained to me that they deducted 30% from my roth 401(k) coz I am non resident alien(Philippines). Is this really the norm?

I have this information in our benefits website. Below is the detail about your 401(k) Match and Savings Roth Partial Distribution from 03-22-2017.

Gross Cash Payment (Cash before deductions) $16,947.91

Federal Withholding -$5084.37 (estimate)

State Withholding -$0.00

Net Cash Payment (Amount you receive) $11,863.54 (estimate)


Our benefit center representative explained to me that they deducted 30% from my roth 401(k) because I am non resident alien. Btw, I am a Filipino citizen residing in Philippines now.

Can you enlighten me if this is really the norm. Roth 401(k) is a contribution after tax, and them getting 30% during my withdrawal would be it is double tax. I think I can understand it it would be just a penalty tax due to early withdrawal but not this much (30%).


Thank you!

1 Reply

I cashout my roth 401k. Our HR explained to me that they deducted 30% from my roth 401(k) coz I am non resident alien(Philippines). Is this really the norm?

Withholding for non-resident aliens is complicated.  But the HR is probably correct.

See information in the following:

https://www.irs.gov/uac/publication-515-withholding-of-tax-on-nonresident-aliens-and-foreign-entitie...


The 30% is a standard rate of withholding.

It is possible you may get it back.  You might have to file a 1040NR.

Here is a link to the U.S./ Philippines tax treaty

https://www.irs.gov/businesses/international-businesses/philippines-tax-treaty-documents

Here is the link to Form 1040NR and the instructions

https://www.irs.gov/uac/form-1040nr-u-s-nonresident-alien-income-tax-return





**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**
Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing

Related Content

Manage cookies