401k

[olusolalekan]

why pay the 10% penalty when you can leave your money there? Even if you move permanently, leave the money there for 1 year when you will have no other US taxable income. Then the withdrawal will be subjected to minimal or no taxes (depending on how big your balance is).

You can even use it to buy a house for cheap now and sell it for profit in 5-7 years. Put a tenant in the house.

as it has been said, if all you need it for is for landing, then just print the statement and use that for landing. don't withdraw just for the sake of removing your money from US.

Olu

 

[cchabert]

Everyone have different reasons, some will come back some will not, I'm not coming back, and if I coming back one day it will to take the girls to Disneyland, I don;t see any other reason so far. So Canada here we go!

 

[todiefor]

why pay the 10% penalty when you can leave your money there? Even if you move permanently, leave the money there for 1 year when you will have no other US taxable income. Then the withdrawal will be subjected to minimal or no taxes (depending on how big your balance is).

Olu

above is an excellent suggestion as well. it minimize the taxable income since there's no more income from the US when you withdraw the money after migrating to Canada.

 

[olusolalekan]

todiefor,

you are the only one who speaks like an accountant. in subsequent years, you will have no US income and therefore will pay no tax effectively because your huge deductions will reduce all of your gross income and you will have no tax liability. A 12 month wait will achieve that for him but he will not listen. Unless your 401K balance is more than 120K, you are better off delaying your withdrawal till when you have no more US income. Then all you will pay at most will be the 10% penalty. You can even avoid that if you use it to buy a house!!! And then sell later to get your money.

OTHERS - who told you you MUST invest only in the country you live in? That is a 1875 kind of thinking!!!! Plus, you can always pull your money out of the US even if you do not live here. Your 401K should be linked to your account and withdrawals are deposited in there automatically. There is internet in Canada my friends!

Note: I am a licenced accountant, so this is not guess work from me. It is legal and smart!

olu

 

[cchabert]

I don't think he will not listen, I think he's more concern about also the big debt he may have, (Credit Cards, Loans, etc.) and having the companies running for his 401k to paid the debt and finish with nothing in hand.

I'm not sure of this but it's my guess

 

[NewYorker]

cchabert You got my point..

 

[olusolalekan]

here is the truth. 401K is not available to creditors unless you are retiring!!!!!!!!!!
It is your nest egg. the law does not allow credit card companies to go after people's 401K!!!

Your quilty conscience is not letting you lsiten to other people's opinion. What then is the purpose of asking? If credit card companies could go after retirement money YOU WOULD HAVE BEEN READING THAT EVERYDAY ON THE FRONT PAGES! WAKE UP!

 

[CV User]

CV user if you move to Canada for good you still can have your 401K? if you can when you withdraw the money it may have a tax because is another country?

You can continue to earn money through 401K regardless of where you live and regardless of your status. I think you would have to pay the US tax, not sure.

 

[CV User]

if you are staying/working for good in Canada and have no more plan to return in the US, i would suggest to withdraw your money. you will get a 10% penalty for early withdrawal plus the amount you withdraw will be part of your taxable income.

anyway, you can reinvest your money in Canada when you settle. you lose for now, but will gain in the future when properly invested your money.

Why not leave that account as it is and let it grow based on market returns?

 

[krutik]

After Fees payment What next?????/

Heloww every one....

My immigration fees just got deducted... but no communication from their side... pls help me.. whats next?

Thanks in advance for ur replies.... god bless...