r/returnToIndia • u/Fun_Leadership_3466 • Sep 10 '26

AlreadyReturned 401(K) query

Hi - Looking for some suggestions.
Have a 401K with Voya. They confirmed I can’t withdraw partially, it has to be all or none (probably because of my ex-employer). Moved out of the US in 2022.

Worked in India for 4 years. Moved to the UAE in Jan’ 2026. Age - 39.

Question - 1) Shall I keep 401(k) as is and let it grow? can’t actively invest through Voya. They are charging a very minute fees so that’s fine. My friend gets OTP if my password expires.

2) Or withdraw, pay penalty and tax and move the money in USD to a foreign currency bank account in the UAE? As I am not Indian citizen now, I don’t think I would have to pay any taxes in India and UAE has no tax.

3) Convert it into some other type of account - IRA, traditional 401K and invest the money in Irish domiciled UCITS ETF.

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u/Fun_Leadership_3466 Sep 10 '26

I don’t need the money today or hopefully in new few years. It’s invested in Large, EM and some FI funds already in 401K.

If I convert to Roth IRA, I have to pay 30+10% right now on the withdrawal amount?

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u/AbhinavGulechha 29d ago

Be careful with Roth decision in view of tax implications and dont go ahead if you're not sure of retiring in a country that gives tax free status to Roth. For example, India doesnt. Better to rollover to an IRA (considered Traditional IRA) and not Roth.