msayali Posted January 27, 2014 Report Share Posted January 27, 2014 I am US Green Card holder (NRI). If I plan to go back to India after 5-7 years and accept Indian citizenship, what will happen to my 401K plan? Is there any way to withdraw it while leaving USA or I can claim it after retirement (Age 60 yrs) with Indian citizenship? Thanks in advance. Link to comment
rahul412 Posted January 27, 2014 Report Share Posted January 27, 2014 I am US Green Card holder (NRI). If I plan to go back to India after 5-7 years and accept Indian citizenship, what will happen to my 401K plan? Is there any way to withdraw it while leaving USA or I can claim it after retirement (Age 60 yrs) with Indian citizenship? Thanks in advance. You are still Indian Citizen, getting GC doesn't mean that you lost your Indian citizen. Coming to 401k, you can withdraw money at any time. Link to comment
JoeF Posted January 27, 2014 Report Share Posted January 27, 2014 You can do early withdrawal, but you'd have to pay taxes on that. You can also get the normal payout after retirement, (nearly) anywhere in the world. Link to comment
t75 Posted January 27, 2014 Report Share Posted January 27, 2014 The money is yours. You need to be aware of tax consequences in both countries. Early withdrawal triggers penalties. Link to comment
msayali Posted January 30, 2014 Author Report Share Posted January 30, 2014 Thanks for replies. I am currently green card but later if I accept citizen ship and then move back to India taking Indian citizenship was my intended question. So what I understood is: any citizenship I own / any country I reside I can use my 401k - before retirement some clauses or taxes or penualty may apply - after retirement money is mine Is that correct? Link to comment
t75 Posted January 30, 2014 Report Share Posted January 30, 2014 The money is yours now not just after retirement. Because of the tax advantaged status of 401ks, withdrawals are limited. Actually, once you leave the employer sponsoring your 401K, it is to your advantage to do a "rollover" to an individual IRA. It also has penalties for early withdrawal, but you have more control over your account (like where it is invested and the investment options). There is no penalty for doing a rollover Depending on the value of your account, you may want to speak with a fee based financial planner. It is important to pay the fee rather than take a free one that gets paid from the sale of investments to you. A financial planner will assist you in assessing risks as they fit your needs. Do not go to insurance companies who are tryimg to sell you policies. Your bank may have a financial planner in their office. The Bankrate website has a lot of information on retirement planning. Become educated and keep up with changes in the law. Link to comment
pontevecchio Posted January 30, 2014 Report Share Posted January 30, 2014 It is not very easy to get Indian Citizenship once you have already taken up US Citizenship. This is an Immigration forum though it seems otherwise at times. Talk to a Tax Professional who will give you the works. Obviously you have to pay him. Link to comment
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