Hi,

I used to work in the US and on a J2 visa. I am currently 34 years old, and I would like to know if I can withdraw some funds bellow personal exemption level (if such a level is available to be based only on my US income) from my 401K, and pay only the 10% early withdrawal penalty.
I currently have income in Australia and no income in the US.

Thanks for your help,
Robert

Robert:

The 401K is considered deferred compensation, so your return will be taxed at the progressive rates AND you will be allowed to claim a personal exemption on Form 1040NR.

That being the case, you CAN withdraw $3,800 and thus pay only the 10% Early Withdrawal Penalty.