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wiki:contents:tax_treaty:us_retire [2019/12/18 11:35] karen created |
wiki:contents:tax_treaty:us_retire [2020/07/24 05:29] (current) karen |
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- | !FIXME This page is just a collection of notes for a future | + | See this blog post [[http:// |
* [[https:// | * [[https:// | ||
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Note that Australia does not distinguish between traditional and Roth varieties - both are taxable in Australia. | Note that Australia does not distinguish between traditional and Roth varieties - both are taxable in Australia. | ||
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The other side of this is: what will the US tax be on withdrawal? This depends on your US status. | The other side of this is: what will the US tax be on withdrawal? This depends on your US status. | ||
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If you're a US taxpayer (citizen, green card holder, resident alien), then the 401(k) or IRA withdrawal will just be taxed under US rules - added to your taxable income if it's a traditional IRA/401(k), and not taxable if it's a Roth IRA/401(k). The income would (most likely) be US source, so Australia would allow a foreign income tax offset for any US tax paid. (Note that your US financial institution may withhold US tax, but that would be applied against any tax actually owed). | If you're a US taxpayer (citizen, green card holder, resident alien), then the 401(k) or IRA withdrawal will just be taxed under US rules - added to your taxable income if it's a traditional IRA/401(k), and not taxable if it's a Roth IRA/401(k). The income would (most likely) be US source, so Australia would allow a foreign income tax offset for any US tax paid. (Note that your US financial institution may withhold US tax, but that would be applied against any tax actually owed). | ||
- | If you're not a US taxpayer (a nonresident alien - which would include anyone who renounced plus Australians who have returned from working in the US on a non-immigrant visa), then the default US position is 30% withholding on all withdrawals. It is possible that Article 18(1) will apply to bring the actual US tax rate down to zero - this will depend on your individual facts and circumstances. If the treaty position applies, then it may be possible to get zero withholding by filing form W8-BEN. Alternatively, | + | If you're not a US taxpayer (a nonresident alien - which would include anyone who renounced plus Australians who have returned from working in the US on a non-immigrant visa), then the default US position is 30% withholding on all withdrawals. It is possible that Article 18(1) will apply to bring the actual US tax rate down to zero - this will depend on your individual facts and circumstances. If the treaty position applies, then it may be possible to get zero withholding by filing form W8-BEN. Alternatively, |
See [[https:// | See [[https:// |