401K - Leaving U.S.

[krish1180]

Hello everyone,

I am hoping someone could help me out. I am on STEM OPT extension and it expires on Mar 14, 2019. My H1B was not selected, hence I have decided to leave the U.S.
Since, I am nowhere near the age limit of 59, I cannot withdraw my 401K funds without paying taxes and a mandatory 10% early withdrawal penalty.

Has anyone been in this situation before? Is there a way to minimize the loss?

Thanks.

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[DesiOPT-FaceBook-Admin]

Your message was posted anonymously on our Facebook wall a https://www.facebook.com/desiopt1/po...41934825823870 on 5th March 2019 - Please review comments from other users

[DesiOPT-FaceBook-Fan]

their is no other way if you want to take that money we have to pay that

[DesiOPT-FaceBook-Fan]

one thing you can do is calculate ur fees for keeping ur 401k account active for the year and take the money out next year to have lowest tax bracket. Again, all depends on calculation based on ur salary, money in 401k account and brokerage fee for 2019. good luck and make an informed decision.

[DesiOPT-FaceBook-Fan]

just so you know - 401K taxes are deferred i.e. even if you were to withdraw after 59, you will have to pay taxes

[DesiOPT-FaceBook-Fan]

I think if anyways you are moving to India, you should pay 10% fee, you will recover it in 2 years merely by putting it in some bank in India.

[DesiOPT-FaceBook-Fan]

Roll over 401K to Regular IRA.. then roll over funds to Roth IRA.. then withdraw funds from Roth IRA.. if you do this next year, you can withdraw 12000$ tax free (standard deduction).