ppht Posted October 6, 2021 Posted October 6, 2021 Hello, I am on H1B VISA , currently working for one of the company in United States. I am not a US citizen. I have to go back to my country next year, and planning to resign before leaving and I am 40 years old. I have couple of questions related to my 401k Withdraw, 1. Can I withdraw 401k money every year say, If I have $100K and withdraw $25000 instead of withdraw complete amount ? 2. If i withdraw partial amount($25k in this case) and if I don't have income in my country, does my tax bracket come down to 20% or below and tax is charged based on that ? 2. I need the money to buy a house back in my country, If I take a 401k loan, I don't have any income to payback, what are my options in this case? Any suggestions would be greatly appreciated.
Popular Post ESOP Guy Posted October 6, 2021 Popular Post Posted October 6, 2021 Most of your questions need to be answered by the plan. The most likely answers are: 1) unlikely... my guess is the best way to do this is put it in an IRA which would allow you to control how much comes out of the IRA. 2) Since #1 is most likely no this is n/a 3) If you terminate it is unlikely they will allow you to take a loan. If you have a loan and terminate that will trigger the loan to become a distribution. Your company ought to be able to get you more information on that. But what I describe is how 99% of all plans work. You need to talk to your company to get the correct answers as they can be plan specific. The above are the most likely answers except for #3 which is pretty much how all 401(k) plans work. You will need to do a good amount of research on taxes, the withholding rules and these kinds of distributions. The withholding rules are complex. This will be US income if you take a distribution. So you will have to keep filing US tax returns if you take the money out of the 401k or IRA over a number of years. If you really have $100k you need to stop looking for free advice and spend some money on a good tax accountant. Free advice is worth what you pay for it. In this case spending some money on a good tax accountant will almost certainly pay for itself by saving you time, trouble and maybe taxes. I would look for someone who really understands taxes for people living outside the US and retirement plans. duckthing, fmsinc, ESOPMomma and 2 others 5
ppht Posted October 7, 2021 Author Posted October 7, 2021 Thanks a lot, @ESOP Guy for your time and response. Surely, I will check with Tax Accountant, I was checking what are the options so that I can prepare to ask right questions for Tax consultant.
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