Skip to main content
May 29, 2024
Question

Taxed Twice for Missed W-8CE for 401K for Covered Expatriate?

  • May 29, 2024
  • 0 replies
  • 0 views

I mailed in form I-407 to USCIS to give up my US green card last year, and I am a covered expatriate.


I have a 401K account, but I forgot to send in the W-8CE to the 401k provider. As a result, it became an “ineligible deferred compensation” account.


Here is my question: on form 8854 I am already required to pay 30% exit tax on full account balance, as if I have taken full distribution. But when I actually take distribution later, I will be required to pay 30% once again (withheld by 401k provider)?


Is there a credit that I can claim during actual distribution to avoid being taxed twice?