m2bangalore
Nov 27, 2010, 12:23 AM
Hello,
I am currently on H1 B visa, for 5 years now, and will be going back to india on 6th Jan. I will start my new job in India on 10th Jan. Need help on how to do my taxes, specially how to managme my 401K and stocks/options.
I have around $27000 in my 401K account. Since I would be moving out of US on 6th, I won't meet the SPT and so will be a NRA for 2011 tax year ( just have exemption amount with no standaed deduction)
1) So, should I withdraw my 401K or not?
2) if so, how should I phase it out.
3) Also, is it possible for me to withdraw 1/3 of amount in Feb 2011, 1/3 in Feb 2012 and 1/3 in Feb 2013? If so will I need to pay taxes in India for this withdrawl amount?
Also, should I be moving my 401K to an IRA or just take distributions from 401K directly? Does that make any difference?
I heard if moving back to India, we don't have to report US 401K withdrawl income in Indian income tax for 2 years, is this correct? If so, then will 2 years be Feb 2011 and feb 2012 or since Indian Tx cycle ends in March, so would two years be considered as Jan 2012 and Feb 2013?
I am currently on H1 B visa, for 5 years now, and will be going back to india on 6th Jan. I will start my new job in India on 10th Jan. Need help on how to do my taxes, specially how to managme my 401K and stocks/options.
I have around $27000 in my 401K account. Since I would be moving out of US on 6th, I won't meet the SPT and so will be a NRA for 2011 tax year ( just have exemption amount with no standaed deduction)
1) So, should I withdraw my 401K or not?
2) if so, how should I phase it out.
3) Also, is it possible for me to withdraw 1/3 of amount in Feb 2011, 1/3 in Feb 2012 and 1/3 in Feb 2013? If so will I need to pay taxes in India for this withdrawl amount?
Also, should I be moving my 401K to an IRA or just take distributions from 401K directly? Does that make any difference?
I heard if moving back to India, we don't have to report US 401K withdrawl income in Indian income tax for 2 years, is this correct? If so, then will 2 years be Feb 2011 and feb 2012 or since Indian Tx cycle ends in March, so would two years be considered as Jan 2012 and Feb 2013?