Moving 401k out of the country?

[FarhadA]

HI,
I am moving out of the US and would like to close my 401k account.

I was here on a H1B visa and now I have got a job in back home in Sweden and would like to move my account with me.

My home address is in Florida at the moment, and I have the following questions:

- Do I need to close my 401k and take the money out myself?
- If yes, then how much taxes I need to pay?
- Is there an agreement between EU and US to transfer my 401k to an european IRA or something like it?

I really appreciate any help I can get, because I amreally not good at this stuff and this money can be a great benefit for my future.

Thanks in advance for all your help,
/Farhad

 

[cbg]

You will be notified by your employer of your 401k options. You can cash it out if you want to; however you will be subject to Federal and state taxes. You will also almost certainly have to pay at least 10% in penalty. I don't know if the US has a reciprocal agreement with Sweden but if there is, you will lose a lot less money by rolling it into an equivalent plan.

 

[FarhadA]

Found something on the web

Hi,
Thanks for the answer. I found this web site:

http://www.ssa.gov/international/Agreement_Pamphlets/sweden.html

But it does not cover the 401k plans, it is only about Social Security.

I have asked some people in Sweden to get help with this.

Best regards,
/Farhad

 

[eerelations]

The quickest way to get the most accurate advice on this would be to ask your employer. To paraphrase cbg, your employer is legally obliged to explain all of your 401(k) options to you.

 

[FarhadA]

Thanks

I will contact my previous company and see if I can get that information from them (I no longer work for them).

Hopefully I don't need to pay that much penalty and will be able to move the 401k to an ATP or something like it in Sweden.

Thanks for all your help,

Best regards,
/Farhad

 

[cbg]

The penalty only applies if you cash it out, not if you move it to another qualified plan.