Foreign Person Tax Rules Apply to Solo 401k Distributions

After meeting certain distribution triggering events(e.g., age 59 1/2, no longer being self-employed), U.S. income taxes still apply if you live abroad and take solo 401k distributions.  The required mandatory federal tax withholding jumps from 20% to 30% . You may get some of the withholding back if a more favorable tax rate applies according to the tax treaty between the U.S. and the foreigner’s home country. You can view the tax treaty rates HERE.

To qualify for a treaty rate, the individual must provide the payor a completed Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting.

Visit HERE to view Publication 515 Withholding of Tax on Nonresident Aliens and Foreign Entities.

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>


  • Popular Video

  • ROBS 401k Funding Process

  • Solo 401k Contributions Including Mega

  • Checkbook IRA LLC

  • About MySolo401k

    We help our clients take control of their retirement money. Our products and services provide our clients the freedom to invest their retirement savings in their own business as well as alternative investments such as real estate, private companies, promissory notes, precious metals, tax liens and equities.
    Learn more

    Connect with us

  • We’re here to help.

    Call: 800-489-7571


    8:00 am - 4:00 pm PT

    Why us?