Expat 401(k) Rollover Glossary

Terms Every American Abroad Should Know Before Moving Their Retirement Money

The Expat 401(k) Rollover Glossary

A simple guide to the most important terms you need to know before moving your retirement money.

Feeling lost in a sea of tax codes and rollover jargon? You’re not alone. This glossary breaks down the confusing terms that matter most for Americans living abroad with old 401(k)s.

Bookmark this page or share it with a friend who needs clarity.

Terms & Definitions

Direct Rollover

A tax-free transfer from your 401(k) directly into an IRA. You never touch the money. This method avoids penalties and withholding taxes if done properly.

Form 1099-R

The IRS form your 401(k) provider issues when money leaves the account. If done as a direct rollover, it should show Code G, which means non-taxable.

Early Withdrawal Penalty

A 10% IRS penalty for taking money from your 401(k) before age 59½. This does not apply to direct rollovers.

60-Day Rule

If you withdraw money from your 401(k), you have 60 days to redeposit it or face taxes and penalties.

Custodian

The institution (like Fidelity or Vanguard) that holds your account and handles transactions.

💸 Expense Ratio

The fee charged by each fund inside your 401(k) or IRA. High fees can quietly eat away at your balance.

Form 5498

Filed by the receiving IRA provider to confirm your rollover. You don’t need to file it, but it’s good to keep on record.

Trustee-to-Trustee Transfer

Another term for a direct rollover. Your funds go directly between financial institutions.

Non-Resident Alien (NRA)

A U.S. tax classification for someone who is not a U.S. citizen or tax resident.

Withholding Tax

If you withdraw your 401(k) balance without doing a direct rollover, your provider may withhold 20% automatically for taxes.

Mailing Address Restriction

Some 401(k) and IRA providers limit access if your address is outside the U.S.—affecting login or service.

Beneficiary Designation

If you take money out of your 401(k) before age 59½, the IRS typically charges a 10% penalty, plus income tax.

Ready to stop guessing and start planning?

We help Americans abroad take control of their forgotten 401(k)s—without the tax surprises.
Download the 3-Step Rollover Checklist or Request a Free Advisor match.