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
I don't think you can roll from a 401K to a foreign company's pension plan.
Seth
"njoracle" wrote
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.
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.
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.
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 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
Since there were no withholdings would you agree that it is not necessary to file a tax return?
"PeterL" wrote
The only real issue is if the existing employer plan allows or accepts transfers/rollovers.
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