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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 76421  
Subject: Re: Cross border financial planning Date: 5/2/1998 8:39 PM
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Greetings, Snoopy33, and welcome.

<<I had a few questions regarding cross border
financial planning ... specifically for those
who are working in the US (through various
work visas) but are not US citizens.

How are 401K accounts settled if one decides
to return to their native country (Canada in
this example). Are there any tax provisions
between the US and Canada that would allow
the individual who has his retirement money
in a 401K plan and decides to return home.

Would it be possible to leave the money in
the account until he/she is eligible for
withdrawls?

Would he owe tax to both the US and Canadian
governments? Or simply the US since she/he
earned the money in the US and was never taxed
on the earnings?>>

If you participate in a 401k and leave your job, you may leave the funds there until normal retirement provided the sum is greater than $5K. When you begin withdrawals, you will pay income taxes to the U.S. government. As to Canadian taxes, you'll have to check with the authorities in Canada about that.

Regards….Pixy




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