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GLOSSARY · VISA-HOLDER FINANCE

401(k) withdrawals after leaving the US

A traditional 401(k) or IRA paid to a nonresident alien is withheld at 30% by default unless a treaty lowers it, and the 10% early-withdrawal tax still applies before 59½. Part of the withholding can be refunded on a 1040-NR, which is why leaving the money invested is often compared with cashing out.

Also called: cash out 401k leaving us, nonresident 401k withdrawal
COMPUTE IT WITH YOUR NUMBERS
401(k) withdrawal when leaving the US →Leaving the US on a visa: what do I net if I cash out now vs later, leave it or roll it over?Roth vs traditional if you might leave the US →Roth or traditional 401(k) if I might leave the US?
LEARN IT PROPERLY
CHAPTER · ARRIVING AND WORKING ON A VISA · FOUNDATIONS401(k), IRA and HSA When You Might LeaveCHAPTER · THE LONG GAME: GREEN CARD, RETIREMENT OR LEAVING · DEEP DIVERetiring Early When You May Not Stay
RELATED TERMS
10% early-withdrawal taxTax treatyResident and nonresident alien (for tax)
SOURCES
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