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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Re: IRA - early withdrawal - Resident Alien - Qu Date: 1/20/1998 9:25 AM
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Greetings, Sarvi, and welcome.

<<I have a friend who is a resident Alien. He has participated in 401 K plan and has some investments in
an IRA. He plans to return to his country in a few years. And was wondering what the rules were in such a case. Once he returns to to his home country he might want to withdraw the money from the retirement accounts. What are the rules for such a withdrawal. >>

Taxation of foreign citizens is an area with which I am unfamiliar. I can say that money derived from retirement plans attributable to domestic employment may or may not be taxable to an alien resident in this country. To get a real answer, your friend should get a copy of IRS Publication 519, US Tax Guide for Resident Aliens, and then sit down with a qualified tax expert. The guide can be downloaded at:
http://www.irs.ustreas.gov/prod/forms_pubs/index.html . My guess is the 401k and IRAs will be taxed and controlled just as they are for anyone else. Indeed, when it comes to the 401k, I'm surprised your friend was even allowed to participate because that's one of the few categories of excludable employees, and most employers use that exclusion.

Regards…..Pixy

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