Can i withdraw my 401K money without any penalties and taxes since i am leaving the country for good?
My Work Visa expires in April 2007. So i may have to go back to my country. Is there any way i can save on this 401 K money. I can keep it as it is in 2007 and take it out in 2008. In 2008, i won't have any income in the United States and so whether i will save on taxes for 401K?
Public Comments
- Nope. If your employer allows it you may be able to keep the account as is. Otherwise you'll have to roll it over into another qualifying retirement account (IRA, etc.) to avoid taxes and penalties. If you take the funds any other way prior to retirement age you must pay the taxes and the 10% penalty tax.
- You should file your taxes for 2007 after your Visa expires - mostly because if you dont you wont be granted a visa to ever come back. But it would be best to check with your plans administrator - they will be able to get you the answers to your question.
- If you are going to leave the country and never come back then withdraw it in 2007 because it won't be reported until the end of the year. If you have a base in it then you can deduct your base off the total and the penalty will be less. If you plan on working until April 2007 then you would want to file a return in 2008 just to get any refund back even though you are out of the country, but if you aren't worried about a refund then take your 401K and run. Of course if you ever came back to the US and tried to work they might get you for income tax evasion.
