401K shalter?

[Guest pinocchio]

assume if a employee switch his job from where he is working, I notised there are three ways his can do for the 401K, as following:

1.

Leave the money : If your vested account balance is $5,000 or more and you're under the plan's normal retirement age, which is commonly age 65, you can leave your money where it is ?and taxes won't be due until you withdraw money from the account.

2.

Leave the money Roll the money into a new plan or IRA : You can roll over your 401(k) into a rollover IRA account or into your new employer's 401(k) plan. If you do a direct rollover ?have the money transferred directly into the new account ?you won't owe taxes until you withdraw money from the account.

3.

Cash out : If you elect to take your money out of the 401(k) and not roll it over into an IRA or another 401(k) plan ?you will owe all applicable taxes. You will also owe a 10 percent early withdrawal penalty unless you leave your company during the year you turn 55 or later.

but, what happen if he decides to leave the country and not working in US for the future instead of working at Taiwan (his hometown)?

As I know so far, there is no treaty for Taiwan.

p.s., he is an non-resident in the US but a resident for tax purpose due to the 183 days rule.

what are the ways (rules) he can do for his 401K?

How should he deal with money as tax shalter???

Please help ASAP

Thanks a lot :confused:

[GBurns]

I suggest that you find a couple of salesmen and let them compete for your potential business. Let them all come up with their various suggestions as to what to do with the money.

I also suggest that you find out, right now, how much control you will have over the money if you leave it where it is until you have gathered as many ideas as you can. If you do not have to make the decision now and can make it later, then take your time and do not rush to a decision. Most plans allow you to do your transfer etc any time even after you leave the job. When you leave the job the only things that you cannot do is to put in more money or take out loans. You are usually able to do everything else even if you are not in the US. If you are not in the US and need to sign documents that need to be notarized, there are notaries in Taiwan (and other countries) and at all Embassies and Consular Offices.

Just do not think that you have to make your decision now.