[1100]

Hi,

I'm working in USA since 2000 & I hv till the date in my 401k $64000.I'm on H1B visa.
My qtn is if I move back to India within couple of years by taking a transfer in the same company in which I'm working, then what will be the consequences of this on my 401k ?
Do I hv to pay the penalty ?If I directly transfer the 401k amount to my retirement account in India then do I hv to pay the penalty on that amount?
What about the taxes on that amount?
Does anybody know about it?

[AtlantaTaxExpert]

Many companies will let you maintain the 401K even if you leave the company. If not, roll it over into an IRA.

You are not obligated to withdraw the money from the IRA even if you leave the country. You can leave it there and manage it from your home country (quite easliy done via phone, fax, Internet access and email).

If you withdraw, you pay state and federal income taxes at the marginal tax rate PLUS a 10% Earlly Withdrawal Penalty which cannot be mitigated. In total, you tax could hit 50% of what was distributed.