Korean Job Discussion Forums

gosia · Joined: 10 Jan 2006

Has anyone had an experience with receiving a pension refund from Korea that is over $10,000? I am from the states and am a bit warry of having the pension office send that money into my back account back home. What happens in this situation? Is it possible to get the pension office to send two smaller payments? Am just worried about the horrible taxes I will have to pay on that money.

Thanks for any advice

cruisemonkey · Posted: Wed Dec 05, 2007 3:07 pm Post subject:

What difference would it make if it's two payments or one?

xCustomx · Joined: 06 Jan 2006

Mr. Pink · Joined: 21 Oct 2003 Location: China

They just sent me a money order or bank draft. I had no questions asked when depositing into my bank account (well other than the look on the guy's face at the amount lol)

MarionG · Joined: 14 Sep 2006

Deposits of over $10,000 in the US are reported to the IRS. This is true even if you deposit a check for $6000, and a check for $4000...total is $10,000, so it's reported. This has been true since some time in the 1980s, hardly a new rule.

If you are filing income tax in the US, you have an exclusion of $80,000 or so...it should cover the $10,000.

The other thing is find out if there's a way to role it into an IRA if you don't want the money to spend. Especially a Roth IRA, as the money has already "been taxed" by virtue of the exclusion. Roth IRA's are a very good deal in this circumstance.