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!

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.

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 (http://www.irs.gov/publications/p523/index.html)

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.

Lower than what?

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

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No matter what your bracket you will still pay the penalty of 10% on the withdrawn amount plus the taxable portion of the Roth plus all of the 401K.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.

Besides housing, Hong Kong's costs of living is quite low... Do you really need to sell? I would tentatively suggest renting out your apartment to pay for the place you'll live in in Hong Kong. That way you still own the home in the US and will have a place to fall back on if you decide Hong Kong is not your cup of tea. Why? I grew up in Hong Kong and don't really like it there. There's too many people. Shop keepers who are rude to everyone but mandarins. Lame politicians. Low quality cafes and restaurants. Friends spend so much time working with no time to see you. I still go back there once every couple of years and the situation has only worsened.

I don't think Hong Kong has global taxation so you probably don't have to pay tax twice on the rental income. Oh and HK has no capital gains tax.

But if you really love shopping or is able to make a lot of money there (lucky you), then I guess it can be all right. Good luck. :)

Ooops sorry didn't see the date. :(