401k Withdrawal


T

Tx1

I worked in the US for a few years and then moved back to
my home country. I have around $57,000 USD in my Fidelity
401k account.

I am not yet of retirement age (still in 30's), but would
like to withdraw the money. Fidelity said there would be a
10% penalty & a 20% Federal Tax withholding, but 20% may or
may be the actual taxes I owe.

Assuming no other income for the year, other than the 401K
withdrawal, how much would be actual tax I would have to pay
on that amount.

<< ------------------------------------------------------- >>
<< 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 (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
 
Ad

Advertisements

B

BillPatch

Tx1 said:
I worked in the US for a few years and then moved back to
my home country. I have around $57,000 USD in my Fidelity
401k account.

I am not yet of retirement age (still in 30's), but would
like to withdraw the money. Fidelity said there would be a
10% penalty & a 20% Federal Tax withholding, but 20% may or
may be the actual taxes I owe.

Assuming no other income for the year, other than the 401K
withdrawal, how much would be actual tax I would have to pay
on that amount.
$57,000 AGI, one exemption, zero itemized deductions, single
2006 rate yields a total tax of $15,522.75 on Form 1040NR
including the $5700 penalty . Besides the 20% withheld,
$3200 in estimated tax would be due in 2007.

You could save about that $3200 by dividing the withdrawal
between two tax years, up to $35250 in 2007, the balance
after December. Only $400 in estimated tax would be due.

Bill Patch

<< ------------------------------------------------------- >>
<< 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 (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads


Top