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Posted by njoracle on March 3, 2008, 7:06 pm
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Paul Thomas, CPA 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 guess I didn't make myself clear. It is not a foreign plan. The 401K
is from an American company. The pension plan is from that same American
company. The American 401K was rolled over into the American pension
plan. There is nothing foreign about that.
The only thing foreign about this is the beneficiary who is a citizen of
and living in foreign country and not a resident alien in the USA.
>
> It's going to be a taxable distribution, and taxes ~~will~~ be withheld if
> the fund managers know what they are dealing with.
It is not a taxable distribution and no taxes were withheld:
Line 1 shows the Gross distribution with an amount of $______
line 2a shows the Taxable amount of $0.00
Line 4 federal Income Tax withheld of $0.00
>> 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.
Since there were no withholdings would you agree that it is not
necessary to file a tax return?
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