What do I need to close before I leave the USA?

Closing things in the right order means your final pay, deposit and tax refund arrive, nothing is left owing, and your 401(k) isn’t cashed out by accident. The big one is your final US tax return, which works differently in the year you leave.

Last checked 8 Oct 2026·Information, not advice

In 30 seconds

Keep one US bank account open for your deposit, final pay and tax refund. Ask first whether your bank lets you keep it with a UK address
You don’t have to do anything with your 401(k) when you leave. Cashing it out before age 59½ usually means income tax plus a 10% additional tax, and as a nonresident the plan withholds 30% unless you claim the treaty rate
The year you leave is often a dual-status year: resident for part, nonresident for the rest. You file one return with a statement for the other part, and some normal options aren’t available

Bank accountKeep oneFor refunds, deposit and final pay

Early withdrawal10% extraOn top of income tax, before 59½

Nonresident withholding30%Default on plan payouts; treaty can reduce it

Final returnDual-statusForm 1040-NR with a 1040 statement

The order that works

Cancel subscriptions and memberships you won’t need: gym, streaming, Amazon Prime, warehouse clubs
Give notice on electricity, gas and internet for your moving-out day and ask for a final meter reading. Return any rented router or cable box
Your phone: keep it until the end, as banks send codes by text. Some people move the number to a cheap prepaid plan to keep it for two-factor codes
Car and renters insurance: cancel from the day the car is sold and the day you hand back the keys, and ask about refunds
Health insurance: check when cover ends and whether you need COBRA for the gap until the NHS
Credit cards: pay off and close, or keep one with no annual fee to keep your US credit history alive if you might come back
Your bank account: keep one open until everything has arrived

Your bank and brokerage accounts

Keep at least one checking account (current account) open, with online banking that works from abroad. You may be waiting for your final pay, your deposit or a tax refund. Some US banks and brokers restrict or close accounts once you have a foreign address, so ask yours what happens before you change it. Download statements before you go: they help with UK tax, a mortgage application and proving your address history.

Your 401(k) and IRAs

A 401(k) is a workplace retirement plan; an IRA is an individual one. Leaving the US doesn’t force you to touch either.

Option	What it means
Leave it in the plan	Usually allowed for larger balances. It keeps growing tax-deferred. Plans can pay out very small balances
Roll it into an IRA	A direct rollover isn’t taxed. Some IRA providers won’t open or keep accounts for people living abroad, so do it before you leave if you plan to
Cash it out	Taxed as income. Before age 59½ there’s usually a 10% additional tax too
Take it later	Withdraw in retirement, when you may be in a lower tax band

The 10% additional tax: applies to most withdrawals before age 59½. One exception: if you leave your job in or after the year you turn 55, withdrawals from that employer’s plan avoid it. That exception doesn’t apply to IRAs, so rolling over first can lose it
Withholding as a nonresident: payouts to nonresident aliens have 30% federal tax withheld by default. The UK–US tax treaty can reduce this if you give the plan Form W-8BEN with your UK details
UK tax: the treaty gives the US the right to tax a lump sum from a US pension scheme paid to a UK resident, while regular pension income is generally taxed where you live. Advisers differ on whether the UK can also tax a lump sum; if it does, it gives credit for the US tax. Roth accounts are treated differently. Get cross-border advice before you take money out
US Social Security: your record stays with you. British citizens living in the UK can be paid US benefits abroad if they qualify, and US and UK credits can be combined under the totalisation agreement

Your final federal tax return

Dual-status year: if you’re a US resident for part of the year and a nonresident for the rest, you file Form 1040-NR marked “Dual-Status Return”, with a Form 1040 attached as a statement for the resident part. You generally can’t take the standard deduction, and a married couple can’t file jointly unless they choose to be treated as residents for the whole year
When residence ends: under the substantial presence test (days in the US), residence normally runs to 31 December of the year you leave. You can end it earlier only if you meet the conditions in IRS Publication 519, such as having a closer connection to the UK for the rest of the year. Green card holders stay resident until the card is formally given up or taken away
Leaving the green card: a long-term resident (green card in at least 8 of the last 15 tax years) who gives it up files Form 8854. You’re a “covered expatriate”, and an exit tax may apply, if your net worth is $2 million or more, your average yearly US income tax over the last 5 years is above $211,000 (2026 figure, about £156,000), or you can’t certify 5 years of tax compliance. For 2026 the first $910,000 of deemed gains is excluded
Sailing permit: get the Form 1040-C or 2063 certificate before you go, unless an exception applies. It isn’t the final word on your tax
FBAR and FATCA: for the resident part of the year you may still need to report UK accounts. See How do I move money between the UK and the USA?

State tax

States tax you on income while you lived there, and some keep treating you as resident if you keep strong ties. File a part-year resident return for the year you leave.

Place	What to know
California	Part-year resident return. California looks closely at whether you’ve really left. A safe harbour treats people abroad for at least 546 days in a row under an employment contract as nonresident, with conditions
New York	Part-year resident return. Keeping a home in New York can keep you taxable there
Massachusetts, Illinois, DC	Part-year resident returns; check the state revenue department
Texas and Florida	No state income tax on wages
Other states	Check the state revenue department for part-year and domicile rules

Mail and addresses

US mail forwarding is designed for moves within the US, so don’t count on it to send post abroad. Change your address directly with your bank, 401(k) and IRA providers, the IRS, your state tax office and your insurers. A US mail-scanning service can help if a lot still arrives at a US address.

Keep copies. Keep your final payslip and W-2, your lease and deposit letters, car sale papers, your I-94 history and, if you had one, your green card or I-407 receipt. They help with your last returns and if you ever come back.

For the full order of leaving, including your job, home and car, see How do I leave the USA, and in what order?

What to do next

Choose which US bank account you’ll keep open and check it allows a UK address
Decide what to do with your 401(k) before you leave, with cross-border advice
Book your final federal and state returns with a US–UK tax adviser

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Sources

Last checked 8 Oct 2026. Rules and prices change, so check the official source before you act. Spotted something out of date? Tell us.