401k Rollover to IRA...as a Non US resident?????

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coco1106
Posts: 80
Joined: Sun Jan 20, 2019 3:40 pm

401k Rollover to IRA...as a Non US resident?????

Post by coco1106 » Thu Apr 11, 2019 1:50 pm

Hi,

When my husband leaves his job next year, he is planning on rolling over his 401K to a IRA, by that time our home will be sold , furniture in storage,

Do we still have to be residents of USA to preform the rollover ??? I am just thinking if the rollover takes 2-3 weeks, we may have to stay in a hotel until the rollover is complete ????...............which is ok if we have to stay in a hotel, but I would rather not !

I am not sure if we able to do the rollover if we are residents of canada ??
( husband said as soon as we declare ourselves at the boarder with our inventory list of household goods, the customs officer stamps the inventory list from our moving company then we are Canadian residents ???)

The 401k is with Fidielty , and we are not 100% if we are able to keep it with them so he is just thinking ahead , so if its has to be rollover to another firm it will take longer.

So do we have to be residents of USA to preform the Rollover ???

one last thing, Is it true that Fidelity will issue a check for the rollover if you use another firm, the check has the company name and FBO ..your name..
This kinda worries me alot, is this safe, will fidelity do a electronic transfer for a 401k rollover ( 7 figure 401k)....this scares me alot .

Thanks for any input.

nelsona
Posts: 15980
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: 401k Rollover to IRA...as a Non US resident?????

Post by nelsona » Thu Apr 11, 2019 2:13 pm

The only thing that NEEDS to be done before becoming a Cdn resident, is any IRA/401(k) etc CONVERSION to a Roth.

Cdn residency has no impact on ANY other transaction.

To be clear, when we speak about getting any accounts set up and transfers done before leaving US, we are talking about establishing the required relationship with a firm (according to THIER rules, not any regulations).

So, once you tell ABC that you are moving to them, and they accept you, the fact that the money comes in days/weeks after you left doesn't matter. They will gladly wait for the money. it has nothing to do with your physical location at the moment of the transfer.

What we are trying to avoid is SCRAMBLING (because your current firm gives you two weeks to clear your accounts), while living in Canada, to find a brokerage that will deal with you, where you have never had any discussion or previous relationship. Remember, it is not illegal for firms to take on new clients (just as it is not illegal for any brokerage to maintain retirement accounts for cdn residents). It is solely their own decisions to not keep Cdn customers, not allow new Cdn clients, etc.

I would not worry about the manner your rollover is made. Your new company will take care of this between them and fidelity. Always use the new firm to make any transfer as they are much more keen to get your money than Fidelity (in this case) would want to see it leave.

Btw, staying in a hotel would not lengthen your Cdn non-residency (not that it matters in this case), because you have a permanent Cdn home by that point, and no permanent US home, and that by definition makes you Cdn TAX resident. So, technically, your Cdn residency starts the day you hand over the keys to your US home.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

coco1106
Posts: 80
Joined: Sun Jan 20, 2019 3:40 pm

Re: 401k Rollover to IRA...as a Non US resident?????

Post by coco1106 » Thu Apr 11, 2019 2:47 pm

Nelsona...again thank you so much, I really appreciate your input.

We are planning on staying with my husbands mum( who lives in the town we are moving to in canada) for a few months,
I dont want to pick out a house during the craziness of moving, packing etc, our stuff will be in storage, once we find our new house we will move to the new home.

I just thought we had to be a USA resident during the rollover process of the 401k..........If Fidelity is a NO GO as far as maintaining accts,
then we plan on transferring IRA,ROths trustee to trustee transfer to another firm ( TD,RBC,SCHWAB)........ALL have informed me that they are able to maintain accts for non US residents, and I have it in writing ( thank you for that tip !!)

Thank you again !

coco1106
Posts: 80
Joined: Sun Jan 20, 2019 3:40 pm

Re: 401k Rollover to IRA...as a Non US resident?????

Post by coco1106 » Thu Apr 11, 2019 2:52 pm

I meant to say we will do the transfers this summer, so those accts are set up with the new firm before we move.
the rollover we will do once he has left his job.

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