ADP Online Retirement Savings Account

Can I withdraw my U.S. retirement savings (401K or IRA) tax-free or at a lower tax rate as a nonresident Alien?

All through each year we get many inquiries on how to withdraw money from an 401(k) or an IRA tax-free, or to reduce tax burdens. U.S. taxes that will be deducted from their distribution.

We've developed a tried and tried process to make the benefit of your U.S. retirement withdrawal tax-free or at a lower tax rate.

We have been able to obtain many claims of refunds to government officials from the U.S. government for the taxes that were not paid from the U.S. retirement withdrawal.

Contact us via email or give us a call to arrange an initial free consultation via phone to discuss your circumstances.

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Don't withdraw the U.S. retirement funds, until you've had a discussion by our company first.

If you have made payments towards the U.S. retirement plans such as an IRA or 401(k) and you are a non-resident alien you'll be subjected to a withholding tax of 30% tax upon request for a withdrawal of your account. However, there are some exceptions that can be applied to this tax law. You might be able to withdraw the funds tax-free or at lower tax rates. If you are one of the tax treaty countries or region, then you may be eligible for tax-free withdrawal. If you're not in a tax treaty nation there are other options to lower the amount of U.S. taxes that will be taxed withheld.

After you've left for good from the U.S. for good and returned to your home country it is possible to cash out a portion or all of the funds that you've saved inside the 401(k) or an IRA. Generallyspeaking, the administrator of your retirement plan must hold back a 30% tax on the withdrawal request in order to collect U.S. taxes. There are however, a few alternatives that could be used for the withdrawal being tax-free or at a lower amount of tax (lower than 30 percent).

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Common questions we get asked:Who is a Nonresident Alien?

*You have worked for a time in the U.S. on a visa (H1 L1, H1, etc..) to perform an assignment, and you have returned to your home country.

*You have forfeited the U.S. green card;

You have renounced the benefits of U.S. citizenship.

Do I have to submit to 10% penalties for early withdrawal if are under 59.5 year old?

Yes, you'll be in the midst of paying the 10% tax on early withdrawal penalty. This is in addition to the tax withholding of 30. It is mandatory to submit an U.S. nonresident tax return and pay an additional tax of 10. There are some exemptions if you're a non-resident alien who chooses to take advantage of tax treaty benefits. You can make use of our own tax opinion letter or another option for non-resident aliens is to use our tax opinion letters prepared by our firm based on IRS personal letter rulings IRS tax procedures and IRS tax publications which state that you are exempt from certain exceptions from the tax penalty.

Do I have to pay taxes upon my withdrawal from the funds in my U.S. retirement account as non-resident Alien?

There will be 30 percent U.S. tax withholding at the time you make the withdrawal. We can however assist you in this procedure and possibly make it be tax-free or with taxes taken out at a lower tax rate.

Do I need to complete an U.S. income tax return for my U.S. earned income?

If you've paid more than what you are supposed to, you need to file a request for refund. If you correct in withholding (30 percent tax) then filing a tax return isn't necessary. If you did not have any tax that was withheld from your income, then you're required to complete a tax return to get exempted tax benefits under the treaty. You must complete IRS Form 1040NR along with an explanation of the tax treaty position that you have adopted and include our tax opinion letter, which protects you from any future tax penalties.

I've taken out my funds as well. The U.S. has already withheld 30% of the tax. Do you have the ability to return the tax back?

Yes, you can collect these taxes which were previously taken away from you and get any or all of them paid back to you. We'll need to request an amount of refund by your U.S. IRS's tax-collecting agency.

What will happen on the balance of my U.S. retirement account after I quit the US for the last time?

The account is yours and you have the right to do what you like with it. You are free to leave the U.S. and let it expand. You can remove it and relocate to your country of origin at any time you wish.Summary:

It is possible that you have spoken with other companies regarding how the tax treatment of your U.S. sourced income is taxed as a nonresident alien . You could have received different levels of advice on how you should manage reporting tax on your U.S. sourced income. This kind of tax-free withdrawal plan or tax-free rates will require a skilled firm that is specialized in working with individuals who earn U.S. earned income that is sourced as non-resident aliens. We are aware of what we are doing, so explore the rest of our websiteand discover who we are.

This tax-free withdrawal strategy might require an U.S. retirement plan administrator our own Tax opinion letters. We've researched this issue and are able to offer the IRS personal letter rulings and tax treaty guidelines along with IRS revenue procedures. We can also provide you with an opinion tax letter describing what are the IRS codes and how U..S tax treaties apply to your particular situation.

To claim a refund of the tax withheld over and that are refunded to you by government officials from the U.S. government, this is a requirement to present them with our own Tax opinion form, IRS tax treaty disclosure form, and declaration of tax.

If your plan administrator has your funds taken from the plan administrator tax-free, then you will be issued an IRS Form 1042. This form will be provided to government officials from the U.S. government and put you in a position which requires you to file an U.S. nonresident tax return informing the tax treaty's position in a tax disclosure form that states it's an exempt tax disbursement. we will also include a personal tax opinion letter along with our tax report.

If you were employed within the U.S. on a work visa (H1 or L1..) however are returning to your home country, then you are considered to be a non-resident alien. Our office is able to process a number of renunciations in respect of U.S. citizenships or surrender of green cards for our clients. 

one of the steps is the preparation of a tax reduction plan prior to and following the time they have renounced the U.S. citizenship or give up their green cards. If you are the U.S. Nonresident Alien, then you might be able benefit from U.S. tax treaties on your U.S. sourced income or request a refund of taxes taken out of your tax refund.

The fee structure we use for this kind of engagement is structured two ways based on the circumstances. If you've withheld taxes and want to determine if this could be reduced and returned to you, or if we could apply a tax treaty that will make the entire process tax-free. 

Our policy is that we won't receive payment from you until your tax that was over withheld are returned to you, or the tax treaty was approved as a valid position by government officials from the U.S. government. Our service includes we communicate direct with the U.S government, to confirm that our submissions were approved and processed. The cost is flat price per service.