viralchhaya
Jun 18, 2011, 10:35 PM
Hi, I am a 38 years old Indian citizen, was on L1 in the US for 3 years & returned to India in 2007; I filed returns in the US for 2007 income in 2008. I had no US income in 2008 & 09... In 2010, I withdrew my 401K savings & tax was withheld @ 20% on that in the US. I have now been sent a form 1099-R by the 401K Management Trust Co. I have the following questions:
* I now understand that there is a 30% withhold stipulation for 401K distribution to non-residents. I had not filed any 'Departing Alien' document with the IRS or with the 401K trust (I was not aware that I had to do this) - hence the trust may not have been aware of my NR status & thus deducted only 20%.
* Does this mean that I now need to file a tax return in the US, esp. for the (possible) 10% shortfall in the withheld status? Again, there was no earning in 2010, just existing 401K was withdrawn & the tax on that was already deducted at source @ 20%.
* Does there exist any treaty between India & the US where the 401K should not be taxed at all & hence I can file to claim back the tax that was withheld in the US?
* If I need to file a tax, ***. Advice how, I no longer have a US address. Also, the last date for this was June 15th which has just passed & I did not file for an extension.
* I now understand that there is a 30% withhold stipulation for 401K distribution to non-residents. I had not filed any 'Departing Alien' document with the IRS or with the 401K trust (I was not aware that I had to do this) - hence the trust may not have been aware of my NR status & thus deducted only 20%.
* Does this mean that I now need to file a tax return in the US, esp. for the (possible) 10% shortfall in the withheld status? Again, there was no earning in 2010, just existing 401K was withdrawn & the tax on that was already deducted at source @ 20%.
* Does there exist any treaty between India & the US where the 401K should not be taxed at all & hence I can file to claim back the tax that was withheld in the US?
* If I need to file a tax, ***. Advice how, I no longer have a US address. Also, the last date for this was June 15th which has just passed & I did not file for an extension.