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    southpaw1983's Avatar
    southpaw1983 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 1, 2009, 11:53 PM
    401(k) withdrawal case
    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 up to 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's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    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's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    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.
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