11

I lived in the US for about 7 years, and started saving money in the company's 401K plan. I had a green card, but decided to move to my home country years before it expired. I have a US SSN.

Now the company is closing the 401K plan, and all accounts must be rolled over or cashed out. I want to do a direct roll-over to an IRA, but I cannot find any banking institution that will allow me to open an account when I am not a citizen, nor reside in the US.

Is there a bank that is open for foreigners?

If not, I will have to cash out my 401K. Who do I contact to find out if my country has some sort of deal with the US in regards to taxes? I would of course prefer to not pay the penalty (20 % federal + 10 % state tax), and instead reinvest the money in a retirement fund in my country.

5

You can definitely open an IRA and roll the money over. I suggest instead of trying opening online calling the institution and asking what would be the procedure in your specific case.

If not, I will have to cash out my 401K. Who do I contact to find out if my country has some sort of deal with the US in regards to taxes? I would of course prefer to not pay the penalty (20 % federal + 10 % state tax), and instead reinvest the money in a retirement fund in my country.

US embassies some times have listings of tax advisers who work with US expats in the countries they cover. You can check for such a list on the website of your local US embassy. These people will be able to answer this question.

However it is highly unlikely that you'll be able to avoid the tax and penalty in the US in this scenario. It is not likely that you could "roll-over" into a foreign retirement fund (from your country's laws perspective), but maybe your country has some solution for this.

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .