401k with a Work Visa

There is a foreign person from India who is in the United States on a work visa. He has a SSN, but he is not a US citizen and is contributing to a 401k.

What options does he have for his 401k funds after he goes back to India? Can he leave the assets in his 401k or roll them to an IRA? What happens when he distributes the funds after he goes back to India? Can he still file a tax return when he takes the distribution?

Thanks!



Whenever he takes a distribution from the 401k or rollover IRA the Feds will require 30% Federal Income Tax Withholding which will effectively force him to file a US Income Tax Return unless he’s happy with a 30% tax rate.

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