I have a spousal roll over IRA and regualr IRA (was 401 K) and am a resident alien. If I loose mu status as a resident alien will I have to pay more taxes/penalties as a resident alien?

I am now 51. I do not need the money at the moment, but if I risk paying more taxes/penalties if I wait longer and have lost my green card, than should I start taking money out with the 10% penalty to be on the safe side?

Thanks for the answers,

Ingrid

Ingrid:

If you want, you can begin drawing down both accounts a set amount each year based on your life expectancy. You will not be liable for the 10% Early Withdrawal Penalty and will pay taxes at the resident rate for the time you retain your green card.

Thank you for your answer. What happens if I do loose my status as resident?
So my life expectancy is 80 years in the US, 29 years to go (I hope) and I say I have $200.000, than I can withdraw without penalty $6896.55 on a yearly basis without penalty as of now? Can I take out more if I turn 59.5?

Once you turn 59.5 years old, you can take it all out without penalty.

There are some special advantages you can benefit from while living abroad.
Look at this article about IRAs, Roth IRAs and the Conversion Decision for Americans Living Abroad (http://www.thunfinancial.com/Roth-IRA-Conversion-for-American-Expats-2012.php)

Once you turn 59.5 years old, you can take it all out without penalty.


Thank you for the answers. Where can I find the article that I can withdraw already without paying 10% penalty?

There are some special advantages you can benefit from while living abroad.
Look at this article about IRAs, Roth IRAs and the Conversion Decision for Americans Living Abroad (http://www.thunfinancial.com/Roth-IRA-Conversion-for-American-Expats-2012.php)

Thank you very much for the article. I cannot find in this article exactly that I can start withdrawing without a penalty before 59 1/2 except maybe that my late husband would have reached by now the age of 66...