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southpaw1983
May 1, 2009, 11:53 PM
Hello Experts,

I am a 25 year old working on an H1-B visa in the US. I will be returning to India next year.
I have been contributing to a 401(k) since I started working and have saved up around $10k. My company matches my contribution upto 4%.I would like to know what my options with my 401(k) are when I leave the country. I do not need this money in the near future. I would like to keep it here in the US till I am 59 1/2 and withdraw. I would like to control this account from India. What are the tax implications for this approach? Is there a more practical approach to doing this?

Any help is appreciated,

Regards,

Southpaw.
MukatA
May 3, 2009, 12:38 AM
If you leave the current job, the employer may send you check for your 401(k) after withholding 20% tax. Check with your employer.
AtlantaTaxExpert
May 4, 2009, 12:45 PM
SouthPaw:

Contact a stock broker who would be willing to set up a rollover IRA for you. I KNOW Charles Schwab will do so with little problem.

Transfer a minimal amount from your 401K now to get the IRA set up, so that when it comes time to return to India, transferring the balance will be a simple matter of a phone call to the 401K custodian.