I am a non-US citizen currently working in CA. I plan to early retire this year and move overseas. What should I do with my 401(k) money in order to minimize tax burden?

1) Should I rollover to IRA?
2) From reading a few threads, I know that I will have to pay federal tax. Let's say I move back this year (2006). Withdraw money in 2008 when I will not be the resident of any state. Do I still have to pay state tax, in this case, CA tax?
3) Can I avoid this by moving to Nevada before I leave the U.S. for good? Or I cannot because the 401(k) was accrued while I worked in CA.

Thank you for your help!

1) Roll it over to an IRA. That will give you more control on the timing of the withdrawal.

2) Once you establish residency in the foreign country, the state tax liaibility will no longer exists. Time the withdrawal accordingly.

3) Only if you establish Nevada state residency, which, for most states, require you move in for six months.