topic 401k early withdrawal for non-residents in Retirement tax questions

401k early withdrawal for non-residents

msvardhan — Sat, 01 Jun 2019 00:37:11 GMT

Hi,

If I work on H1 in USA for 2 years and go back to home country, during the 3rd year if I apply for early withdrawal of 401k from home country, do I need to pay any tax apart from 10% penalty, because during 3rd year my income will be zero in USA. Please confirm.

Thanks.

You will need to file form 1040NR. $01k distributions are...

bine22 — Sat, 01 Jun 2019 00:37:13 GMT

You will need to file form 1040NR. $01k distributions are taxable, so if you take out more than the personal exemption you will owe income tax in addition to the penalty (so if you do not need the money urgently, I would suggest to withdraw it over sever years and keep the distributions in the amount of the personal exemption) . Also make sure to provide the 401k custodian form W8BEN before you make any distributions

Re: 401k early withdrawal for non-residents

Ogedies — Wed, 19 Feb 2020 05:30:55 GMT

Is this a trusted reliable response from intuit?

I will be in a similar situation For 2020 as a non citizen moving back to my country of origin (Spain) hope you can help me.
I will have no other sources of income in the US other than my early 401k distributions. As long as I withdraw less than $12,400 each year - the standard deduction for 2020- I could count on getting the 20% tax withheld back from IRS?

thank you very much for your help.