Date: Sat, 20 Aug 2005 15:22:18 CST
From: mydevnull@fastmail.fm
Newsgroups: misc.invest.financial-plan
Subject: Re: 401K withdrawal from outside US.
   posting-account=uic-Gg0AAADh2KYNEjM4HtTsbQVZxwPW
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	hhWRsvL5anyO02SIc7GTz5MIF9vTBwcIaBeYLmfxnVEn/XwDKNWfYw==
	=lFgE

Sorry, I guess I missed a key info - I am not a US citizen. So, for
income earned outside US, I do not owe US any tax. Could you confirm my
observation from the original post given this?

Thanks,
Vinay.

HW "Skip" Weldon wrote:
> On 20 Aug 2005 00:30:05 GMT, Rich Carreiro
>  wrote:
>
> >Right -- since they live outside of the county, they can exclude up to
> >$80,000 of wages, or other earned income from tax.  But if they have
> >any Chilean bank interest, etc., that *is* subject to US tax and they
> >should be reporting it.  Of course, with all or most of their wages
> >excluded from tax, theirs standard/itemized deductions and personal
> >exemptions would offset several thousand dollars of unearned income.
>
> My understanding is that unlike IRA distributions, a 401k custodian
> must withhold taxes from a 401k distribution.  To get that withholding
> refunded, the taxpayer would have to file a US return for that year
> and at that point he/she would go through the mechanical process
> described above.
> 
> 
> 
> -HW "Skip" Weldon
>  Columbia, SC