The Basics of 401K for Expats

With a 401K for expats, a employee can deduct a set amount from their pay and deposit it straight into their retirement account. The 401K plan has the advantage that these gains are tax-exempt, since the money is deposited tax-free, you can save more money.

1. Additionally, some employers provide a 401k match, whereby they match the deductions made from employees’ paychecks


2. For instance, if you earn $2,000 USD every paycheck and contribute 5% of that amount to a 401k, 100 dollars from your salary will be deducted tax-free and another 100 dollars will come from your company (if your employer has a 401k match program). Employers occasionally change how much they match (for example, 25%, 50%, etc.).

What happens to my 401k if I move abroad?

Once you decide to relocate permanently abroad, it is crucial to understand the laws and policies that may affect your 401K.

What happens to my 401k if I move abroad?

Once you decide to relocate permanently abroad, it is crucial to understand the laws and policies that may affect your 401K.
The number of persons working and living overseas has increased due to the pandemic. Today, it is more widely accepted, and we are witnessing an increase in the number of people moving before retirement.
Large US banks and financial companies have made the decision to discontinue doing business with clients who are located abroad. They didn’t think it was worth the expense to serve the customers.

3 Options You Can Do With Your 401K If You Move Abroad

Once you decide to relocate permanently abroad, it is crucial to understand the laws and policies that may affect your 401K.
The number of persons working and living overseas has increased due to the pandemic. Today, it is more widely accepted, and we are witnessing an increase in the number of people moving before retirement.
Large US banks and financial companies have made the decision to discontinue doing business with clients who are located abroad. They didn’t think it was worth the expense to serve the customers.

Option 1: Leave it as it is

Option 2: Transfer funds to an IRA and manage your own investment.

Option 3: Withdraw your 401K