nun

Payments from the company defined benefit pension will not be taxable in the US when paid to you in the UK. The tax rate is 0%.....that tax rate on the 401k is also 0%. However, there is mandatory 20% withholding from 401ks when paid to US reasidents, but US residents can choose 0% withholding on payments from defined benefits. Take a look at W-4P. The difficulty is that W-4P is only for US residents or citizens so even if Fidelity treats you as a resident because you are an NRA you can't use the form required to claim resident rates........stupid Fidelity. Ask them if they are treating you as a US resident if the DB pension can be taken with zero withholding.

Yes it's probably too late to open an IRA and roll over the 401k because you are an NRA

childmountain

Thanks, I'm going to write to Fidelity and the IRS and see what they say.

Cook_County

The IRS will not reply unless you request a formal PLR from them: https://www.irs.gov/help-resources/t...letter-rulings

nun

My bet is that Fidelity will withhold 30% because the payment os going oversea's and they will just ignore the tax treaty and anything that you claim on the W-8BEN. You will then have to claim it all back on a 1040NR and of course do a UK self assessment to pay the UK tax.

mrken30

There is something about an age 55 limit if the 401k is your original employer's 401k. If you rolled it over its definitely 59 1/2. Someone else on here may know the answer or might be worth doing a little research. That's the reason I haven't rolled mine over.

mrken30

I have found an article describing when you can withdraw funds penalty free from your 401k at age 55

https://www.thebalance.com/401k-with...age-55-2388222

Unfortunately I think I was misinformed and I won't qualify. You have to be age 55 or over when you left your employer

childmountain

Thanks mrken30 - I was younger than 55 when I left, too