GC - 401K


msayali

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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.

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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.

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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?

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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.

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