Bringing over a U.S. 401(k)

martin18

Hiya, moved back from the US two years ago, leaving a 401k pension fund over there. What with the exchange rate as it is, I'd love to bring it over now and put it into a pension fund here, but as far as I can see, even with the tax treaty I'll still pay a 10% early withdrawal penalty over there. Has anyone tried to do this (401k/IRA), and what has been their experience?

Any info appreciated, thanks.

MakersMark

I've been growing mine in the US markets since 2006.

You won't get a better return here.

When I hit 59 1/2 ill start to withdraw.

dennyk

The regulations generally don't allow a 401(k) to be rolled over to a foreign account of any sort. Only specific types of retirement accounts are eligible for a tax-free rollover, and foreign investment accounts and pension funds almost never meet the requirements. You'd usually be better off keeping the money in the US and taking disbursements from it at retirement. If you want more control over your funds, rolling over to a US IRA would be an option, but that unfortunately might prove difficult if you are no longer living in the US and don't have a traditional IRA account already; it would be difficult or impossible to open a new one as a non-US resident.

martin18

Thanks for the responses. Disappointing. Doubt the dollar will be this high again for a very long time!

markjbloggs

Can you use the 401k to invest in Euro denominated instruments or US ADRs of European companies?

martin18

Interesting idea, Mark, I'll have a look into that. Big departure for me as stupidly (though recently not so stupidly) I've had it all in cash for years!