Employees can use this article to understand how citizenship and mailing address can affect your ability to contribute to a US-based 401(k) plan or individual retirement account (IRA), and how to request distributions sent outside the US.
For purposes of this article, references to the “United States” or “US” include US territories. Although Guam, Puerto Rico, and the US Virgin Islands are located outside the continental US, they are US territories, not foreign countries. For 401(k) and IRA purposes:
These regions use US banking systems (ACH may be available, depending on the bank)
Mailing a check to these locations is considered domestic, not international
An alien is an individual who is not a US citizen or US national, as defined by the IRS. An alien can be a non-resident alien (NRA) or a resident alien (RA). An NRA is any alien who does not pass either the green card test or the substantial presence test, also defined by the IRS.
401(k) plans
An NRA who does not earn US-sourced income is not eligible to participate in a Gusto 401(k) plan. If you are an RA or an NRA who earns US-sourced income, you are generally eligible to participate in your employer’s 401(k) plan as long as you meet the plan’s eligibility requirements that apply to all employees, like age or length of service requirements.
If you meet the requirements above, you can participate in the 401(k) plan with the same rights and benefits as a US citizen.
IRA
You need to have US-sourced income to make a contribution to an IRA.
To update your address, choose the path that matches how you signed in, then follow the steps.
Sign in to Gusto and go to Benefits. Under Savings, find 401(k) and select View. Select Manage 401(k).
Go to Settings, then Personal Settings.
Enter your full international mailing address accurately, including a valid country and postal code. Use the appropriate format for your country — for example, province or region.
Sign in directly. Visit the Gusto Retirement sign-in page and sign in with your Gusto Retirement credentials, or use Gusto Single Sign-On (SSO). Learn more about SSO.
Go to Settings, then Personal Settings.
Enter your full international mailing address accurately, including a valid country and postal code. Use the appropriate format for your country — for example, province or region.
If you cannot update your address online, contact our Participant Retirement Care team for help.
Pro tip: Verify your mailing address before requesting a distribution. Expedited international shipping is not currently available.
To request a cash distribution for delivery to an international address, follow these steps.
Contact us to get the appropriate paper distribution form.
Complete either an IRS Form W-9 or a W-8BEN, as applicable.
Upload both the distribution form and IRS form (W-9 or W-8BEN) through the Shared Files page of the Documents tab in the main menu of your dashboard.
Important: We can only mail a physical check for distributions delivered outside of the US. If you enter an international bank account number, a check is still mailed, since ACH is only supported for US bank accounts.
Payment options for distributions delivered outside the US
Payment method
Delivered to an address within the US
Delivered to an address outside the US
ACH transfers
Yes (US banks only)
Not supported
Paper check
Yes
Yes (mailed outside the US)
Wire transfers
Not supported
Not supported
Bank info entry
US and international details accepted
International info accepted, but results in a mailed check
Note: If you enter an international bank account number, we can only mail a physical check. ACH is only supported for US bank accounts.
Delivery times vary based on your location and local postal services. On average, here is what you can expect.
Canada, UK, and Western Europe: 2–3 weeks
Asia and South America: 3–5 weeks
Remote areas: Up to 6 weeks
The currency of your check
All checks are issued in US dollars. Your local bank may convert the funds into your local currency, subject to its exchange rates and fees.
Taxes on distributions delivered outside the US
See US federal tax withholding on distributions sent to an address outside of the US.
The IRS does not allow rollovers from a 401(k) or IRA into foreign retirement plans, including Canadian RRSPs or pensions in the EU, UK, or Australia.
Any attempt to move rollover-eligible funds abroad may be subject to:
20% (or 30%) mandatory withholding
Potential early withdrawal penalty
Possible taxation in the destination country
Note: Some tax professionals in Canada or the UK may suggest workarounds, but these are complex and carry risk. Consider consulting a qualified cross-border tax advisor before attempting these strategies.
Here are the rules, timing, and supported payment methods when distributions are sent outside the US.
Topic
401(k) and IRA distributions delivered outside of the US
ACH transfers
Not supported
Paper checks
Mailed internationally
Update address to international
Via Personal Settings
Check arrival time
2 – 6 weeks
Rollover to foreign plan
Not allowed
US territories (for example, PR, Guam)
Considered domestic
Currency conversion
Handled by your local bank
This content is for informational purposes only and is not intended to be taken as tax or legal advice. Please contact a qualified professional for further information.