Retirement Planning / Anyone know how 401ks works for US residents who are not US citizens?
Jun 19, 2022
Anyone know how 401ks works for US residents who are not US citizens?
I've got a good friend at work who brought this up and I'm trying to help. He's got his green card and likely not going to retire in the US. Anyone know what the rules for 401ks and IRAs for people in this situation? Worth it for him or not?
Replies (3)
Jun 19, 2022
@Alan593, A traditional IRA or 401k is a nice option because they can get the tax benefits today by opening one and contributing pre-tax earnings. It also depends on where your friend is from and what's accounts are recognized as tax-exempt or not. Many countries have a tax treaty with the US, so he should check with his native country.
Jun 21, 2022
@Ira865, good stuff, I don't think he know about these tax treaties.
Jun 21, 2022
@Alan593, it depends on the policies of the country he's from. In Canada, for example he can maintain the same tax benefits on such accounts.