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.