I live in California and have green card. If I relocate outside US more than 2 yrs, do you recommend I cash out IRA before leaving or how long should I wait to minimize or eliminate state and federal taxes? I know I can't avoid penalty if I'm less than 591/2. Thanks

You know the Current Green card requirements don't allow you to leave for 2+ years and NOT lose the green card?

I almost ALWAYS recommend keeping the IRA IN the United States until you treach retirement age. You can manage the account via the Internet from anywhere in the world.

If you cash it out early, expect to pay AT LEAST 25% in taxes and maybe as much as 40%.