401k, 401(a), 403(b) what happens if you leave the US

[Faxingberlin_]

I'm looking for advice from expats who have left the US to work abroad permanently and potentially left money in a 401k, 401(a) or 403(b).

I have been offered a Job in the US and will get visa sponsorship for a maximum of 12 years but likely 6 years. Currently there is no pathway to permanent residency (could change in the future but have to assume it wont for now). The employer will automatically deduct 15% of my salary and deposit into a 401(a) and also match 15% all pre tax (this is mandatory). There is also the option to put more pre tax income into a 403(b) supplemental RA if I choose to.

As I will be a temporary resident in the US, after 6 - 12 years I may have to leave (be forced to ). My question is what will become of the 403(b) and 401(a) funds if I am forced to leave the US due to expiry of work visa? Will I be forced to withdraw and incur the 10% early withdrawal penalties? Can I rollover to an IRA and then withdraw to avoid penalties? Can I leave it there and just begin withdrawing at age 59½ even though I would be outside the US? Should I not bother with the 403(b) option and just go with a taxable investment account or IRA for additional savings? I am 29 now and my FIRE age is roughly 12 - 15 years so I will be retiring early.

Basically would I be penalized outside of my control if I was forced to leave the US?

Any insight would be very welcome.

[rhe]

I am in this situation. Once you have left the US you may not be able to buy mutual fund type investments, but will still be able to buy annuity type investments. This is probably not a big problem as long as you choose a portfolio you are happy with before you leave.

The tax treatment when you withdraw outside the US depends on the tax treaty of the country you are in. For Japan the treatment looks quite favorable.