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?

[richard-m-blanco]

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!

[LudwigVan_fan]

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