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chicschizo
Mar 22, 2009, 08:55 PM
hi,

i have seen Q&As on withdrawal of 401k balances for foreigners when leaving the US for good. i understand that there is a 10% early withdrawal penalty and 20% WHT forwarded to IRS.

Say if i have 10k in my account and i want to withdraw it; does this mean i get back 7k (1k penalty and 2k WHT) or does the 20% WHT already includes the penalty charge meaning i get back 8k?

also what are the liable taxes? only federal or does it include state, medicare FICA etc?

thanks

MukatA
Mar 22, 2009, 11:12 PM
Any such withdrawal is subject to 10% penalty and withdrawal will be treated as your income.
So you will file your tax return. You may get a refund or owe tax depending upon your other income.