[sbail]

Dears,
I worked in USA from 2000 to 2002 under the L-1 VISA for my current employer, that I am going to leave, so appears that now I am entitled to withdraw all my money from my 401K plan.
Since January 2003 I live in my original country (Italy).
Looking in this forum, it looks like that if I fill the 8-BEN form to Fidelity I could avoid to pay the 20% tax and maybe the 10% early withdrawing. Is it right?
Of course, I cannot transfer the money to my pension plan in Italy due to the restriction there.
What is the reality?

Thank you very much for helping

[AtlantaTaxExpert]

Sbail:

The money that was deposited into the 401K was deposited pre-tax. For this reason, when it is withdrawn, the IRS expects taxes to be paid.

If it is withdrawn early, the 10% Early Withdrawal Penalty applies.

I know of no provision in the Internal Revenue that exempts foreign nationals from this requirement.

Hence, I do not think the 8-BEN form will stop the 20% withholding.

[sbail]

Thank you
Sbail

[AtlantaTaxExpert]

Glad to help!