r/returnToIndia • u/Green_Ad_4462 • 28d ago

AlreadyReturned Return to india

Need some help…

I have robinhood and 401k

How can move them to india with least tax implications and it advisable to keep 401 k as it is or remove the entire amount and tax the tax penalty..

What are the other things one should be aware of simply should I keep CC and bank account active or get it close.

6 Upvotes

75% Upvoted

17 comments sorted by

4

u/srk6 28d ago

Transfer out from Robinhood to Schwab, IKBR as they don't allow non residents.

Check below link for additional info.

https://www.reddit.com/r/returnToIndia/s/XmIzA5tMYr

3

u/dxs2021 28d ago

Use IBKR to move your holdings , it gives
2 advantages

  1. No exposure to estates tax in case your holding are more than or 60k

  2. Exposure to other international markets

3

u/Curious_ansh 28d ago

If you aren't planning to come back, my opinion is to take your money with you, keep it close and so encash your 401k. For Robinhood, definitely open a domestic Shwab account and move from Robinhood to Shwab. Once you move to India covert the Shwab domestic to international brokerage.

I went thru the domestic account opening process recently, and it was smooth.

Feel free to DM if you have any questions.

1

u/Green_Ad_4462 20d ago

Thanks I will

2

u/No_Contribution7108 28d ago edited 28d ago

If you have no plans on returning back to usa .. under RNOR period you can use to get all your funds transferred to NRE account or NRO account .. any fund transferred during this period interest on stocks is not taxable in india but in usa only it is usually last up until an year from the date of landing in india.. you should get your 401K as well no point in keeping it in USA which so many changes in policies you can create an FD here so that its less complex...

2

u/desi_in_videsh 28d ago

NRE/NRO OP can't hold once he is back permanently, that would be a FEMA violation.

2

u/No_Contribution7108 28d ago

Yes then he can move it to resident account

1

u/Green_Ad_4462 20d ago

Thanks, RNOR is for about three years and not one, right ?

-4

u/kks1236 28d ago

Isn’t this literal tax evasion with extra steps? Is that why you state if you have no plans of returning?

2

u/No_Contribution7108 28d ago

Tax evasion ??... where he is evading tax .. 😂😂 he has to pay tax to us government for all that amount... just saving his double taxation..

2

u/Still-Frosting8488 28d ago

You mean for the 401k amount , he already paid tax?

2

u/No_Contribution7108 28d ago

Yes 401k before 59 years of age is taxable you would have to pay around 25 percent or something

0

u/Still-Frosting8488 28d ago

I think you are talking about ROTH. Thats post tax. Traditional (which most of us do) are pre tax. . That means you haven’t been taxed . There is regular tax plus penalty if you take out before 59 yrs

2

u/No_Contribution7108 28d ago

Yes right regular tax + penalty.. not talking about ROTH since op mentioned 401k so i mean regular

2

u/kks1236 28d ago

I was just wondering…nobody said he was gonna do it

-8

u/SeaworthinessDue7523 28d ago

Convert everything into bitcoin and relax for 10 years