MB
30th November 2005, 09:35 PM
Hi, all. This has been touched on before here, but:
for our own (good) reasons we are *considering* taking an early 'cash out' on a 401(a) and a 403(b) from a USA employer from which I resigned five months ago. We are both in our thirties and have been in NZ for about five months, with PR.
We're aware that -- we think -- we can take a cash lump and probably pay 20%+10% $US tax penalty. (By the by, we'll be in the US in a week or two's time to assist in any paperwork, though I imagine it can all be done online/fax and phone anyway.)
Question: if we were to try instead to transfer the funds directly to a NZ account, what minefields would we have to negotiate on either and/or both sides? E.g., would we have to transfer to a near-identical retirement account? Or would a more regular kind of bank account do? Either way, what US-based and/or NZ-based penalties would there be?
Thanks.
for our own (good) reasons we are *considering* taking an early 'cash out' on a 401(a) and a 403(b) from a USA employer from which I resigned five months ago. We are both in our thirties and have been in NZ for about five months, with PR.
We're aware that -- we think -- we can take a cash lump and probably pay 20%+10% $US tax penalty. (By the by, we'll be in the US in a week or two's time to assist in any paperwork, though I imagine it can all be done online/fax and phone anyway.)
Question: if we were to try instead to transfer the funds directly to a NZ account, what minefields would we have to negotiate on either and/or both sides? E.g., would we have to transfer to a near-identical retirement account? Or would a more regular kind of bank account do? Either way, what US-based and/or NZ-based penalties would there be?
Thanks.