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If i withdraw my 401k, move the proceeds to an offshore bank, and then leave the country forever, did I just avoid taxes and penalties?
6 Answers
- Anonymous6 years agoFavorite Answer
When you "withdraw" that money, unless you are already 59.5 they will automatically withhold a little over half of it to cover penalties and Income taxes....you will get a refund of any overpayment when you file your next Tax return...
If you do not FILE, you will never get that money back.
- Wayne ZLv 76 years ago
No.
On a 401k withdrawal, the trustee is required to withhold 20% for estimated federal taxes.
- Anonymous6 years ago
When are taxes due? At the time of withdrawal? And I understand the implications of the scenario would equate to tax evasion... this is just a hypothetical.
- SlickterpLv 76 years ago
No. If the withdrawal is taxable, it's taxable the second you withdraw it, no matter what you do with it. As a US citizen, you owe US income taxes on worldwide income no matter where you live.
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- JudyLv 76 years ago
Legally you'd still owe the tax. Could you get away with it? Maybe. But remember, they'll have already deducted 20% for tax when you withdrew it.
- geraldLv 76 years ago
no you just absconded like everyone else it's called deserting unpatriotic and a dishonour sod it is how you got here