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    chicschizo's Avatar
    chicschizo Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Mar 22, 2009, 08:55 PM
    Calculation of 401k withdrawal penalties and WHT
    Hi,

    I have seen Q&As on withdrawal of 401k balances for foreigners when leaving the US for good. I understand that there is a 10% early withdrawal penalty and 20% WHT forwarded to IRS.

    Say if I have 10k in my account and I want to withdraw it; does this mean I get back 7k (1k penalty and 2k WHT) or does the 20% WHT already includes the penalty charge meaning I get back 8k?

    Also what are the liable taxes? Only federal or does it include state, medicare FICA etc?

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

    Mar 22, 2009, 11:12 PM

    Any such withdrawal is subject to 10% penalty and withdrawal will be treated as your income.
    So you will file your tax return. You may get a refund or owe tax depending upon your other income.
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