I mailed in form I-407 to USCIS to give up my US green card last year, and I am a covered expatriate.
I have a 401K account, but I forgot to send in the W-8CE to the 401k provider. As a result, it became an “ineligible deferred compensation” account.
Here is my question: on form 8854 I am already required to pay 30% exit tax on full account balance, as if I have taken full distribution. But when I actually take distribution later, I will be required to pay 30% once again (withheld by 401k provider)?
Is there a credit that I can claim during actual distribution to avoid being taxed twice?