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Hoots : 401k / Foreign Tax Credit I am resident in the UK. My Wife is also resident in the UK, but is a US citizen. I'm 40 years old. We file a joint US tax return each year, and we file 1116 against all of my UK earnings. I - freshhoot.com

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401k / Foreign Tax Credit
I am resident in the UK. My Wife is also resident in the UK, but is a US citizen. I'm 40 years old.

We file a joint US tax return each year, and we file 1116 against all of my UK earnings.

I have a 401k from my time working in the US. Can I withdraw this 401k and use my UK tax credits against any tax that might be owing on this?

My UK tax burden is always far higher than my US tax, so I always have a lot of tax credits "left over".

Thanks


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You might be able to offset the income tax you'd have to pay on the withdrawal, but you're still going to be stuck with the 10% early withdrawal penalty.


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