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Subject Author Date
Rollover of 401K From American Company Involving a Foreign National njoracle 03-03-2008
Posted by njoracle on March 3, 2008, 4:43 pm
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 I read the other thread on "401k rollover" and how to handle that on
line 16 of the 1040. However, what if the rollover is for a person
residing in a foreign country and a 401K from an American company which
was rolled over into that company's pension plan?

Is it necessary for this person to file an income tax with the IRS since
he is not living in the US and has not lived (or visited) here for over
20 years? Of course, because of the rollover, there is no tax due and
none was withheld.

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Posted by Seth on March 3, 2008, 4:58 pm
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>I read the other thread on "401k rollover" and how to handle that on
>line 16 of the 1040. However, what if the rollover is for a person
>residing in a foreign country and a 401K from an American company which
>was rolled over into that company's pension plan?
>
>Is it necessary for this person to file an income tax with the IRS since
>he is not living in the US and has not lived (or visited) here for over
>20 years? Of course, because of the rollover, there is no tax due and
>none was withheld.

I don't think you can roll from a 401K to a foreign company's pension
plan.

Seth

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by Paul Thomas, CPA on March 3, 2008, 5:22 pm
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>I read the other thread on "401k rollover" and how to handle that on line
>16 of the 1040. However, what if the rollover is for a person residing in a
>foreign country and a 401K from an American company which was rolled over
>into that company's pension plan?


There's no such animal where you can roll a US pension/IRA/etc into a
foreign plan, etc.

It's going to be a taxable distribution, and taxes ~~will~~ be withheld if
the fund managers know what they are dealing with.




> Is it necessary for this person to file an income tax with the IRS since
> he is not living in the US and has not lived (or visited) here for over 20
> years? Of course, because of the rollover, there is no tax due and none
> was withheld.



Yes, a tax return will be due, mainly because it's highly likely that the
withholdings are greater than the tax that may be due.




--
Paul A. Thomas, CPA
Athens, Georgia

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by PeterL on March 3, 2008, 7:05 pm
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wrote:
>
> >I read the other thread on "401k rollover" and how to handle that on line
> >16 of the 1040. However, what if the rollover is for a person residing in a
> >foreign country and a 401K from an American company which was rolled over
> >into that company's pension plan?
>
> There's no such animal where you can roll a US pension/IRA/etc into a
> foreign plan, etc.

I didn't read it that way. OP said roll a 401K from an American
company into that company's (i.e. that American company) pension
plan. The question is whether one can roll a 401K into a pension
plan.


>
> It's going to be a taxable distribution, and taxes ~~will~~ be withheld if
> the fund managers know what they are dealing with.
>
> > Is it necessary for this person to file an income tax with the IRS since
> > he is not living in the US and has not lived (or visited) here for over 20
> > years? Of course, because of the rollover, there is no tax due and none
> > was withheld.
>
> Yes, a tax return will be due, mainly because it's highly likely that the
> withholdings are greater than the tax that may be due.
>
> --
> Paul A. Thomas, CPA
> Athens, Georgia
>
> --
> << ------------------------------------------------------- >>
> << The foregoing was not intended or written to be used,   >>
> << nor can it used, for the purpose of avoiding penalties  >>
> << that may be imposed upon the taxpayer.                  >>
> <<                                                         >>
> <<   The Charter and the Guidelines for submitting posts   >>
> <<  to this newsgroup as well as our anti-spamming policy  >>
> <<                  are atwww.asktax.org.                 >>
> <<         Copyright (2007) - All rights reserved.         >>
> << ------------------------------------------------------- >>

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Paul Thomas on March 3, 2008, 9:21 pm
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> I didn't read it that way. OP said roll a 401K from
> an American company into that company's (i.e. that
> American company) pension plan. The question is
> whether one can roll a 401K into a pension plan.




The only real issue is if the existing employer plan allows or accepts
transfers/rollovers.






--
Paul A. Thomas, CPA
Athens, Georgia

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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