401k Distributions for NON US Citizens living outside the US

[Guest ahyland]

Has anyone run into the situation where an NON US employee is working in the US and participates in the 401k plan. When they return back to their home country, how is their 401k handled?

[JanetM]

You need to get a W-8BEN from them. If you don't you are required to withhold 30%

[lexi]

I am working on something similar in teh case of Canadian employees. Look to any applicable treaty between the US and the particular country involved. In our case, our employees were working in Canada and they will qualify for reduced withholding under the US-Canada tax treaty by completing the appropriate IRS forms.