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    jupi32000's Avatar
    jupi32000 Posts: 1, Reputation: 1
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    #1

    Jul 23, 2012, 05:18 PM
    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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jul 23, 2012, 05:24 PM
    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.
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