Moving to India? BEST Options for 401k Funds | NRI | R2I

[@DesiReturn]

If you are looking for CPA/CA who can help with your tax planning and tax filing , please send a note to info @ desireturn .com and we can provide references.

[@puffythecutie7524]

My return to India was the worst decision. I had no one here and professionally things in India are so political that a person who is introvert and honest cannot succeed.

[@viktrancestudio6398]

Dont worry....its survival of the fittest there. F**k and screw everyone you come across. Be ruthless. There are no rules. Good luck.

[@DesiReturn]

Thanks for sharing your experience. Would you be opem to share your story on our platform? We want to present stories on both sides of the coin so people can make informed decision.

[@SudipChoudhuryplus]

Return to India is much better than staying in USA after retirement age of 60 so that u don’t have to work till 80-85 just to be able to pay your medical insurance, property tax for your paid of home etc etc. basically paying bills to survive in usa needs continued earnings unless you have few million dollars in savings. During working age, it makes sense not to return if u have to come back to india and work. Of u have better plans or just to retire early, perfect decision to return to India. India feels so much at home wherever you go and life is real. Not a fake life like in usa.

[@padma9025]

@@SudipChoudhuryplus👏👏👍

[@srikanthk5769]

I am a student of finance and i absolutely enjoyed your video. Great work. Keep it up

[@DesiReturn]

Thanks a lot!! Appreciate it. Please whare it with others who can benefit from the content

[@rmohana82]

What are the pros and cons in this case? ‘Planning to return to India in next 3 yrs at the age of 46 and not wanting to withdraw 401k right away and can wait till 60 yrs old and want to withdraw 10k$ every year after retirement’

[@DesiReturn]

That is scenario 5, where you withdraw in ROR. Also keep in mind, there is minimum redemption requirement based on 401k amount, which will dictate how much you need to withdraw irrespective of of what you want and taxes you have to pay.

[@rmohana82]

@@DesiReturn thanks for your response 🙏🏼🙏🏼

[@PrashantGijare]

Is social security taxed in India?

[@VasuB-ie6yd]

This is the information I am looking for a long time so that I can take a decision whether I need to mx out my 401k contributions. Thank you for complimenting of all options. I think you haven’t covered the tax component for option 1 leaving the funding till 59.5 years.

[@DesiReturn]

Thanks a lot! Option1 (leaving funds in employer 401k) and Option 2 (rolling it over to traditional IRA) are pretty similar. If you leave it till 59.5 you wont pay penalty but taxed based on withdraw (option 6 - ROR apply assuming your are in India with out 10% penalty.)

[@bharatkumarkondapalli423]

Can you cover in one video what happens to social security benefits when we return to India before we get our green card but spent more than 10 years in US. Will we get social security payment from US and if so, do we get double taxed as in US and in India.

[@DesiReturn]

Sure. One would qualify for SS benefits after 40 credits. Yes they are taxable in both places but DTAA apply.

[@Cool_tech.01]

Make sure you cover estate tax in case primary person pass, there is heavy tax penalty, so keeping 401k will be very tricky

[@DesiReturn]

True and we covered the limiations of estate tax for NR in the video and important thing to consider when keeping 401k assets.

[@cybrainx72]

When you convert to Roth.. one thing you are failing to mention is resetting Cost basis if you had growth in the portfolio. So in case of India tax cap gain is calculated from a higher base

[@DesiReturn]

Yes since you are already paying taxes when converting and cost basis will be reset.

[@cybrainx72]

@@DesiReturn How will that happen ? You don't need to sell assets in 401k when you are converting to Roth. Without selling assets and buying them back how will cost basis will be reset ?

[@mahemaar7551]

Can you please consider the case where a person can withdraw little by little after retirement and give an example? TIA

[@DesiReturn]

Ok will do a video.

[@ashinde]

is there any advantage of rolling over from employers 401k account to IRA?

[@DesiReturn]

Yes better options ( typically more)to invest than employer sponsored plan and low expense ratio. We covered it in the video

[@srinathnitb]

Nice video.. Interested in knowing about the substantial periodic withdrawal option with an example.

[@DesiReturn]

Thank you! Its a complex one but will try to do cover this subject. Better to work on this with a CPA

[@krishnaveepuru4057]

I think even if someone is not a green card holder they will be considered as a resident for taxation purposes in US if they qualify substantial presence test. Anyone who lived for more than 183 days in a year in US for more than 3 years are considered as a resident person for tax filing in US. Am I missing anything?

[@DesiReturn]

Thata right. We share the calculator for that in description

[@randomvids6788]

Great example with actual taxes during RNOR. I heard that they do 40% flat taxation in US once you become non resident. Do we get the amount back once we file taxes?

[@DesiReturn]

Thank you. You can file WBEN-8 when you become NR to help with less tax with holding. Once you file taxes, you would get the money back if there is excess withholding/payment

[@madhukzingxl]

@@DesiReturni filed WBEN-8 and updated my Indian address with fidelity but i don’t see any option for less tax. Their systems default to 30% minimum and their customer support has no clue on how to fix it. I am planning to utilize the RNOR route to withdraw funds. Does anyone see a better option? Please suggest

[@sgk999]

Do OCIs who are tax residents in India also have to declare IRAs in India?

[@cybrainx72]

Of course

[@DesiReturn]

Yes

[@HimanshuSingh-id4xl]

What will happen to SSA contributions if someone moves back to India without having 10 years working years.

[@DesiReturn]

They are not qualified for SS benefits without 40 credits. What ever one contributes, its gone in a SS fund.

[@midhun77]

I don’t think you can roll over 401k to Roth IRA based on income limits You can only do back door conversion

[@DesiReturn]

If you are not working in US, your income limits wont be an issue for roll over. Back door Roth is only after hitting certain threshold income limits.

[@midhun77]

@@DesiReturn Bro do you know if US banks allow US expats living in India keep their US IRA accounts active? Thanks

[@DesiReturn]

@@midhun77 Yes they do. Certain borkerage accounts are more friendly with foreign addresses for correspondence.

[@midhun77]

@@DesiReturn thanks Any idea which banks Thnx

[@DesiReturn]

@@midhun77 Checkout Fidelity , Charles Schwab

[@charlies.1633]

Anyway can you do a video about tax for a scheduled tibe individual in USA? My wife is from the northeast and has never paid any tax in India, it was difficult for here to even get a passport because they don't even keep birth records, her passport birthday is not even here real birthday they gave her one based on some school records, lol. We are planning to retire in India, we have mostly been investing in land and a mutual funds in India. She keeps saying tribal people don't pay tax. Hopefully no surprises. Very hard to find out any information on this.

[@DesiReturn]

Thanks for reaching out. This might be something better to check and confirm with your CPA. If you need recommendations, please send a note to info @ desireturn .com Thanks

[@padma9025]

Very useful information

[@DesiReturn]

Thank you!!

[@NITBAN]

Can you please make a video on American citizens with OCI card living in India after retirement in there 40s, 50s or 60s?

[@DesiReturn]

Thanks for watching. What specific details are you looking at? We have guests who moved to India for retirement in 40's and 60's.

[@NITBAN]

@@DesiReturn mostly on the same subjects. 401K, Social security and taxation.

[@DesiReturn]

Got it. We will be covering these topics in general. If you are looking for CPA to address specific questions we have some we can recommend, please send a note to info @ desireturn .com or on insta at desireturn.official.

[@Sunshineandlemon]

Me and my husband are in mid 40s and 2 kids ( small) less than10. We are both from different and far apart northern states where IT sector is not much. I think about moving back before hitting 50s and yes want to work as well as we have small kids. Business is a risk without not much inheritance and much savings. Please have some guests with similar stories to motivate us. We are here in America almost 20 yrs

[@DesiReturn]

We have few guests who moved in 40s with small kids and working in India. Please check out videso on our channel. We have new story every Thursday and try to cover different families/situations. All the best

[@Punch8721]

Withdrawals from 401k and IRA are not classified as Earned Income in the US.. The withdrawal is ordinary income and fully taxable

[@ramanujpatro]

True, Don't think the person lived in US and understands the difference.

[@DesiReturn]

Yes they are fully taxable and practically there is no difference between earned income vs ordinary income ( taxed as active income bucket which is what conveyed).

[@DesiReturn]

Wrong assumption about the person. Please share the difference as both are fully taxed.

[@Punch8721]

@@DesiReturn The difference is if you have earned income you can make further contributions to an IRA or Roth IRA, but I understand your point.

[@DesiReturn]

Agreed.

[@randomidentity4279]

Any penalty in moving all 401K to India? We r not moving , just moving funds to invest in India .. thanks

[@DesiReturn]

If you withdraw before 59.5 and its not qualified withdrawal, there is a 10% penalty irrespective of place of residence. Also one needs to pay tax on the withdrawal amount assuming its traditional 401k

[@randomidentity4279]

@@DesiReturn any tax in India when brought to India?

[@DesiReturn]

@@randomidentity4279 if you are not living in india, no tax there...

[@hkasina]

If one wants to settle in India then rolling over from 401k to Roth IRA is bad idea, we will be paying tax when rolled over to Roth as well as in India at the time of withdrawal, since the roll over and the withdrawal will most likely happen in different financial years that are years apart one will not get foreign tax credit.

[@DesiReturn]

Yes and unless rules change. Please consult with CPA before making a decision.

[@yashsha045]

Great videos

[@DesiReturn]

Thanks for regularly watching our videos!

[@rekharekha-nd8ox]

Can you please talk more on estate tax with some examples?

[@sankark6114]

India's law and order system is failing the common people. The number of pending cases is rising at all levels, and corruption is rampant in the lower-level police and justice departments. Seeking justice is a lengthy and frustrating process. Despite efforts to digitize many aspects of the system, there is a lack of oversight and accountability. Even as an educated person, I have been unable to obtain justice in a false civil case filed against me for an inherited property. Lawyers and judges in lower courts often neglect to seek input from plaintiffs or defendants, prioritizing financial gain through delays. My frustration has led me to change several lawyers, but the case remains stagnant. Attempts to escalate the matter and seek intervention at higher levels have been unsuccessful. The current state of affairs in India makes me hesitant to raise my children there. I can only hope to one day return and contribute to creating opportunities for the Indian people, whom I hold dear.

[@DesiReturn]

Sorry about your experience. Thanks for sharing it.

[@vk7875]

Please confirm details on ROTH IRA. Per Gov clarification its mentioned Roth IRA will be treated by Indian Gov same way like US Gov.

[@DesiReturn]

Can you share the recent Gov clarification that you were referring to? This helps lot of people. Thanks

[@bodapativasu125]

Thank you for sharing this information. Could you please try to do one detailed one on DTAA (india-USA) taxation with example.

[@DesiReturn]

Thanks for watching. We will have it on the list.

[@DeeshyamVlogs]

Make individual video on last two topics

[@DesiReturn]

What are the two topics?

[@ccsp7011]

Do not forget, if you move back to India - You have to deal with thugs ruling as MLAs and Ministers, to pay bribe everywhere, No body respects you, your kids will have to deal with "reservation". Schools and colleges are are of very low quality and standards, people who cannot get jobs anywhere end up becoming teachers (90% of them).

[@RamCharan-z9k]

That is a never ending true story 😄

[@saurinshah3874]

Can you start a business with that money

[@DesiReturn]

You mean with money withdrew from 401k… thats your money and you can do whatever you want after taxes and any applicable penalty

[@NorthBuyCapital]

Meaning got US passport Now wants cheap labor

[@sabarishananthanarayanan2765]

Wow grear video.. o Please cover systematic withdrawal..with example.. Your channel earned a follower ..please keep posting more content on other options .. 40% estate tax id insane ... What happens to tax if we move 401k funds after penalty paid in US to dubai or something on those lines ?

[@DesiReturn]

Thank you!! Systematic withdrawal is a bit complicated and we will cover general information but better to work with CPA on that. After you withdraw money, you can invest however you want and earnings on those investments are taxed based on the investment type