Expat FAQ
Do you have a general question on expatriation? FAQs give you answers to the most frequent questions: At Work.
How do I convert my 401k plan into an IRA?
An IRA is a retirement investing tool that can be either an Individual Retirement Account or an Individual Retirement Annuity. There are several types of IRAs: Traditional IRAs, Roth IRAs, SIMPLE IRAs, and SEP IRAs.
Traditional and Roth IRAs are established by individual taxpayers, who are allowed to contribute 100% of compensation (Self-employment income for Sole proprietors and partners) up to a specified maximum dollar amount. Contributions to the Traditional IRA may be tax-deductible depending on the taxpayer's income, tax-filing status, and coverage by an employer-sponsored retirement plan. Roth IRA contributions are not tax-deductible.
A 401(k) plan is a qualified plan established by employers to which eligible employees may make salary deferral (salary reduction) contributions on a post and/or pre-tax basis. Employers may make matching or non-elective contributions to the plan on behalf of eligible employees and may also add a profit sharing feature to the plan. Earnings accrue on a tax-deferred basis.
If you want to convert your 401K plan into an IRA (or Roth IRA) you should convert as a rollover. You can read publication 590 of the IRS website for more information on conversion.
You can rollover your 401(k) into your IRA and turn it into a Roth, depending on your age and income tax bracket. As long as it is a rollover, you should be ok in term of penalties. If you find an international company, future transfers abroad would be easier.
If you are still in the US, you should get some financial advice beforehand.
[31-01-2005]
Traditional and Roth IRAs are established by individual taxpayers, who are allowed to contribute 100% of compensation (Self-employment income for Sole proprietors and partners) up to a specified maximum dollar amount. Contributions to the Traditional IRA may be tax-deductible depending on the taxpayer's income, tax-filing status, and coverage by an employer-sponsored retirement plan. Roth IRA contributions are not tax-deductible.
A 401(k) plan is a qualified plan established by employers to which eligible employees may make salary deferral (salary reduction) contributions on a post and/or pre-tax basis. Employers may make matching or non-elective contributions to the plan on behalf of eligible employees and may also add a profit sharing feature to the plan. Earnings accrue on a tax-deferred basis.
If you want to convert your 401K plan into an IRA (or Roth IRA) you should convert as a rollover. You can read publication 590 of the IRS website for more information on conversion.
You can rollover your 401(k) into your IRA and turn it into a Roth, depending on your age and income tax bracket. As long as it is a rollover, you should be ok in term of penalties. If you find an international company, future transfers abroad would be easier.
If you are still in the US, you should get some financial advice beforehand.
[31-01-2005]
- Non-French residents: What are my tax obligations if I own a furnished property rented out in France
- Are French non-residents exempt from CSG and CRDS?
- How do I apply for a social security number in the USA?
- What should you include in an Expat Contract?
- What are types of Expat Package?
- How do I apply for a National Insurance Number in the UK?
- French Pensions: How does it Work?
- German Pensions: How does it Work?
- UK Pensions: how does it work?
- Retirement in America: how does it work?
- What is a Pension Plan?
- Tax agents of the French state employees abroad
- Taxation of French employees seconded
- International tax treaty and method of taxation of the French expatriate
- Are you a French tax resident under the criteria of the French law?
- I lost my National Insurance Number - UK / London
- Pension calculation when you have contributions in several different European countries
- Claim back tax, Tax return, Tax refund in the UK, P60, P45, P85
- Special tax regime for foreign executives in Belgium
- At you one right to family allowances in Britain?
- How to set up a company in the UK?
- What does the UK tax code mean?
- What is the IR35 UK tax?
- Do you need to set up a company if you are contracting in the UK?
- What is an Umbrella Company?
- Comparison of different levels of taxation in Europe
- Pensions in the European Union
- What are the European E-forms for family benefits?
- What are the European E-forms for unemployment?
- What are the European E-forms for pensions?
- UK: I've Lost My NI Number Card, what do I do?
- What is the minimum wage in the UK?
- How do I convert my 401k plan into an IRA?
- What happens if I keep an IRA in the US while living somewhere else
- US citizens: I've married a UK citizen in UK, how do I fill my US Tax form?
- US citizens: Who must complete a US Tax Return?
- US citizens: Do I still need to fill a tax form if I become a British Citizen?
- Marriage / Divorce - Check your Social Security number (SSN)
- Do we have to pay UK taxes in the USA?
- Unemployment compensation: How to get the E301?
- What are the dole in England after leaving France?
- Domiciled or resident in the UK?
Consult our FAQ made by the most frequently asked questions and specific terms of expatriation.
You can ask details, information and post comments on the forums.
The list of all the questions in the website language is available in one click, ordered by refreshed date or by number of hits.Recommended Partners
For other discussions, advice, question, point of view, get together, etc...: please use the forum.