I am a non-resident alien aged 62, living in Europe and working for a US company. I have never lived in the US or paid tax there. Up until 2002 I was on the company's US payroll, and I have a 401k. Since then, I have been "localized" in France on a local payroll. I plan to retire in 2003. Will I have to pay 20% withholding tax if I withdraw the 401k amount in a lump sum? What are my options to reduce the tax bite?
