Is my 401(k) exempt from Israeli tax after making aliyah?

Yes — during the 10-year tax holiday granted by Section 14(a) of the Income Tax Ordinance, distributions from a US 401(k) or traditional IRA are generally exempt from Israeli income tax. Israel treats these as foreign-source income, and new immigrants (olim chadashim) pay no Israeli tax on any foreign income for ten years from the date of aliyah. The exemption does not, however, eliminate US tax obligations: the IRS continues to tax US citizens on 401(k) withdrawals regardless of where they live.