What happens to my 401k once i leave country?
I got my canada PR and looking to move there upcoming year. I have around 100k in 401k and wanted to know if withdrawing with penalty my only option. I have enough savings so i dont need to withdraw of I could. TC - 235k #401k
Let be till retirement. Or withdraw in a year when you have less income so that you pay leaser tax on withdrawal
Wait till next year. If US economy going up keep it here. Else withdraw such that youāre taxed least may be in every year some amount. You end up paying 10% penalty anyway.
You can just leave it in there until you retire š¤·š»āāļø
I am still finding things out but not sure what happens to my SSN and stuff and how much effort it would take to withdraw from outside the country post retirement.
SSN is your unique ID nothing happens to it. If you have active bank accounts - you should be able to wire/remit the funds when you retire. Not sure what your current age is. But if you just want immediate cash then just withdraw with 40% flat penalty.
Let it sit until you retire and withdraw without penalty.
You can withdraw it in a year when you have no income in the US. That will put you in a lower tax bracket and hence lower taxes to pay. You still have to pay the penalty though.
This is my backup plan. Appreciate the advice
You can roll it over to a rrsp. Google it, the Canada us tax treaty handles this. Open an rrsp with questrade they are the best provider. Don't listen to people saying leave it here, they don't know what they are talking about. They don't know about the US estate taxes http://www.canadianexpatnetwork.com/public/1237.cfm
Yet another one who does not know that the estate tax for non resident triggers at 60k, only citizens have access to the 5M. If you want to pay 40% above 60k, sure, leave the money in the US. The US only has a handful of estate tax treaties Here you go https://en.wikipedia.org/wiki/Estate_tax_in_the_United_States
Open a Rollover IRA or Tradition IRA and roll over the money. After 1 yr use the backdoor Roth to move money to Roth and 5yr holding period. Will take some time to cash out $100k @6k per year limit but you will avoid 10% plenty and tax. Only gains from investments will be taxed.
Not possible as OP will not be a US Person in the future, and as a non resident will suffer 30% withholding from the IRS.
You can just send it to me man. I can take care of it for you
Sure.. I am guessing I need to transfer to a bank in Africa ? š