Hi, I'm 33 and plan to move to Hong Kong next March, most likely permanently. I have about $40K in Roth and $170K in 401K, live in MA, also own an apartment that I want to sell but that can wait, valued at about $200K. What's the best plan to withdraw these fund with the least amount of penalty? Don't exactly want to wait another 30 yrs to use them.

Thanks in advance!

MukatA

Withdraw it when your other income is minimum. Divide it in a few years.

Any withdrawal will be treated as income and will be subject to 10% early withdrawal penalty.

If you are a U.S. citizen or resident, you must report worldwide income in the tax return.

Five Rings

You know about arithmetic, right?

Your withdrawals will be taxed as income plus a 10% penalty on the early withdrawals.

On the other hand, the Dollar may continue to collapse and best to get out while it still has some value. Who can tell?

By all means, sell the apartment if you have been there for two years. See:
Publication 523 (2008), Selling Your Home

SNP

Well, since I will only work in the US for 2-3 months and won't start working right away after the move I guess I'll withdraw them next year to keep the tax lower.

Five Rings

Lower than what?

SNP

tax bracket, no? Or those will count as capital gain and not make any difference?

Five Rings

Go to publication 590, page 67 and read about early withdrawals on a Roth and do the worksheet.
http://www.irs.gov/pub/irs-pdf/p590.pdf
No matter what your bracket you will still pay the penalty of 10% on the withdrawn amount plus the taxable portion of the Roth plus all of the 401K.
None of those are considered capital gains.