Nonresidents are eligible to participate in a 401(k) plan as long as the plan allows participation by non-resident aliens, they are earning U.S. income and meet the plan's eligibility requirements (applicable to all employees).
If the nonresident separates from the employer, they have the same options available as a U.S. resident:
- Continue to manage the 401(k) with Guideline and simply take over the monthly maintenance fee
- Rollover to another 401(k) or IRA
- Take a cash distribution (1)
(1) This information is for general education purposes only and not intended to be tax advice. We encourage you to consult a qualified tax professional before relying on the information provided herein. You may also refer to IRS publications for information about requesting a distribution as a non-resident.