L1B to H1B, Dependents out of status


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I came to the US on Jan 2012 with an L1B visa along with Spouse and kid.  My company did H1B for me this year and I got my I797A valid from Oct-1, 2014. However, I didn't receive I-94 for my dependents and on further follow up with company found that they had missed out on filing for them. 


They have initiated L2- H4 transfer for my dependents today (Oct 16th). 


- is it better for my dependents to go back to India now and apply H4 from there

- WIll they remain out of status untill a decision is made on the H4 application

- How long does it take for their H4 to be approved

- What are the risk of rejecting H4

-  WIll the priod after submission of H4 request counted todays out of status days accrued.

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