Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Taxes (https://www.askmehelpdesk.com/forumdisplay.php?f=320)
-   -   401k small withdrawals after leaving the US (https://www.askmehelpdesk.com/showthread.php?t=686289)

  • Jul 23, 2012, 05:18 PM
    jupi32000
    401k small withdrawals after leaving the US
    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
  • Jul 23, 2012, 05:24 PM
    AtlantaTaxExpert
    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.

  • All times are GMT -7. The time now is 01:54 PM.