[Howie]

We leave the US in less than two weeks. It suddenly occured to us to figure out what to do with our RSP's and 401K's. When we moved from Canada to the US, we found out that non-residents cannot touch their RSP's in Canada, but can keep them as is. We put everything into a super managed fund, so that the portolio will be changed when, for example, the foreign content % changes. As we will likely end up in Canada some day, we are happy just keeping our money in Canada. Also, we don't have to pay any tax in the US or in Canada on RSP earnings.
Now I have some 401K's in the US and have no idea what to do. We will likely not return to the US to live. I think we will likely retire in Canada, but possibly NZ (in about 30 years!!). Can we just leave the money in the US until we retire? Will we have to pay NZ tax on earnings? My knowledge of US tax laws is not great, and I know much less of NZ's system. Any info/advice would be appreciated.

Susan, who's packing and selling like mad. Anyone want to buy a car?

[clg]

My understanding with a 401k is that you can just leave it alone and not pay any taxes on it until you take money out of it. So, if you just want the money to wait until you retire you don't need to do anything. NZ will take taxes once you begin drawing on it though.

Chris

[toesonthenose]

I agree with Chris. Also, most 401k money is pre tax, so if you took it out you will pay income tax on it, as well as a 10% early withdrawal penalty. I would let it sit and grow and deal with it around retirement age when the taxes and penalties are lower.