Ask Experts Questions for FREE Help !
Ask
    ls_sreenivas's Avatar
    ls_sreenivas Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Feb 25, 2009, 03:39 AM
    401k withdrawal
    Hi,

    I have stayed in US for an year now and planning to move back to my home country. I have a deposit up to $5000 in my 401k account.

    My question is:
    Q: Is it good to withdraw the money before I leave US
    Or
    Q: Good to withdraw the money after going to my home country?

    I want to know how taxes will vary if I withdraw it when I am in US and when I do it from outside US.

    Thanks in advance,
    Regards,
    Sreenivas
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Feb 25, 2009, 07:09 AM

    When ever you withdraw, you will pay 10% early withdrawal penalty and must report this as income on the U.S. tax return.
    It is better that you withdraw it when you are in the U.S. Plan administrator will withhold taxes from it.

    If you withdraw when in India, you will also have to report this on India tax return.
    ls_sreenivas's Avatar
    ls_sreenivas Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Mar 21, 2009, 09:10 PM
    Thank you MukatA
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

401k withdrawal [ 4 Answers ]

Hi, I was release from employment May 28,2008 and am still unemployed. Thinking of cashing out my 401k which is taking a beating. First, will I have to pay the additional 10% penelty for early withdrawal. Secondly, With the markets in the state they are, will it be wise for me to cash out now,...

401K Withdrawal [ 1 Answers ]

Is it ever a good idea to withdraw monies from a 401K?

401K withdrawal [ 1 Answers ]

I'm wondering what the penalties are for withdrawing from a 401k early? :( :confused:

Hardship withdrawal for early withdrawal of 401K [ 0 Answers ]

I am, 56 years old, live in the State of Florida, and just lost my job. I have a small 401K ($6,000) with this company and want to withdraw all of it and put it in a savings account to help tide me over until I find another job. I know I will be charged a 10% early withdrawal fee, and I also...

401K Withdrawal [ 1 Answers ]

Ok I'm in a place I need money but have no job and don't know what I am doing in trying to get some money to put on a apartment with a friend and I need to know how to do a draw from the 401k for a start to a new life.

View more questions Search