Withdrew from 401K and IRA in 2020 - tax implications

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gotocanada09
Posts: 1
Joined: Sun Apr 04, 2021 9:28 pm

Withdrew from 401K and IRA in 2020 - tax implications

Post by gotocanada09 »

Hello

Would someone please be able to guide with the below as I have been struggling to find answers. Have already been on 3 sites trying to prepare my return and no luck :-(

Was last in the US in 2009 (12 years back). Withdrew all the amount of my 401K and from my spouse's IRA in 2020. No other income. 401K had tax withdrawn at source ( received 1042-S) as per tax treaty with Canada. IRA withdrawal for spouse, did not (received 1099-R) have tax withheld. No other US income for either of us.

I believe we need to file a federal US tax return though am unsure how best to go about preparing the 1040-NR.

Thanks in advance.
nelsona
Posts: 16947
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Withdrew from 401K and IRA in 2020 - tax implications

Post by nelsona »

If the 401(K) and IRA were correctly withheld (15%), then you would not have to file a 1040NR.
Otherwise the income should be reported on 1040NR NEC.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
nelsona
Posts: 16947
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Withdrew from 401K and IRA in 2020 - tax implications

Post by nelsona »

If the 401(K) and IRA were correctly withheld (15%), then you would not have to file a 1040NR.
Otherwise the income should be reported on 1040NR NEC, using 15% as the tax, and send them the missing US tax.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
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