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Thread: 401k and my retirement

  1. #1

    Question 401k and my retirement

    I paid over 20 years into the traditional 401k. I am not a us-citizen and plan to retire in a different country.

    Where do I have to pay the taxes?

    In the country, I will move to for my retirement, or in the US?

    Thank you very much for any little help!
    Last edited by remozseo; 11-28-2018 at 05:24 PM.

  2. #2
    Mr. Tax Man
    Join Date
    Aug 2008
    Rhode Island


    Just see this wasn't answered. In general, if you're a US citizen, you're taxed on worldwide income, so even if you earned money as a taxi driver in Uzbekistan, the US will still require you to report that income. As you're a non-citizen, you certainly don't have that obligation which raises the next issue. [This also is assuming you didn't marry a US citizen.]

    Your 401K will most certainly be taxable in the United States subject to federal taxes. It was placed in a tax-deferred account and you'll need to pay taxes on it to the US when withdrawn. As you don't have a state domicile, there will be no state taxes associated with it. You'll file Form 1040NR. Generally, withdrawals from 401K's are going to be subjected to 20% withholding.

    Whether you need to report that money in your home country will depend on tax treaties and other exemptions. You can try to read those yourself or find competent local accounting counsel to assist.
    Small Business CPA
    "A tax loophole is something that benefits the other guy. If it benefits you, it's tax reform."

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