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Uncommon Circumstances Regarding 401(k)

In some cases it is possible to find yourself in circumstances in which it is not inherently clear what will happen to your 401(k) upon your retirement. One such situation is relocation to another country. In this case the 401(k) is still subject to all U.S. rules under which you founded your 401(k), including when you will have access to the funds. When the account matures and you are allowed access to the money, it is taxed as it would be were you still living in the U.S. The money is then free to be sent wherever you now reside, though the taxing of this income may differ dependent on the country having a tax treaty with the U.S. For more information on this subject, visit this article by Dan Moisand with MarketWatch.

 

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