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#1
08-15-2005, 08:02 PM
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ira distribution for non residentsHi, do non-residents have to pay federal tax on a IRA (401k) account at time of distribution? Thank you G |
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#2
08-15-2005, 10:05 PM
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| Please clarify what you mean by "non-resident". Do you mean Non-resident Alien? Or are you a US Citizen who doesn't live here? Snipes
__________________ This post does not create an agreement to represent you before the IRS, nor does it invoke confidentiality regulations. Postings are based only on the information provided and you should consult a tax professional in your area before relying on information contained in this post. |
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#3
08-16-2005, 08:18 AM
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| I am a non-resident alien. Thanks  |
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#4
08-16-2005, 09:57 AM
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| Ok, and now for my next question. How did you manage to obtain a 401K if you are a non-resident alien? If you were here long enough to obtain a 401K, it stands to reason that you were here long enough to meet the substantial presence test and be taxed as a citizen, although technically I suppose that doesn't matter. Since the 401K is US Source income, you will need to file a 1040NR for each year you make withdrawals from the 401K, and may or may not owe taxes, depending on how much you withdraw. The only income not taxable to non-resident aliens would be income that is NOT US Source. Snipes
__________________ This post does not create an agreement to represent you before the IRS, nor does it invoke confidentiality regulations. Postings are based only on the information provided and you should consult a tax professional in your area before relying on information contained in this post. |
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#5
08-16-2005, 02:56 PM
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| I worked for 7 years in the US and contributed to my employers 401k plan before I moved back to Europe 7 months ago. At this point, I'm a NRA with assets in a 401k account. Suppose, I'd want my money back do I have to pay federal tax or can I claim a tax treaty (Austria). Thanks |
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#6
08-16-2005, 05:08 PM
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| If I were you I would contact the US Embassy and get the number for the IRS office there. You most definitely must pay taxes on withdrawals from a 401k plan, regardless of status. Snipes
__________________ This post does not create an agreement to represent you before the IRS, nor does it invoke confidentiality regulations. Postings are based only on the information provided and you should consult a tax professional in your area before relying on information contained in this post. |
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#7
08-17-2005, 08:03 AM
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| Thank you for your response. |
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#8
08-17-2005, 09:01 AM
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| Oh, and one more thing... A 401K is not the same as an IRA at all. If you mix up the terms you will confuse anyone who is trying to help you. Susan
__________________ This post does not create an agreement to represent you before the IRS, nor does it invoke confidentiality regulations. Postings are based only on the information provided and you should consult a tax professional in your area before relying on information contained in this post. |
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