I left the USA for India in 2019, and expect to be a non-resident for US taxation purposes when I turn 59.5. In the India-US tax treaty Article 20 Clause 1 states
"Any pension, other than a pension referred to in Article 19 (Remuneration and Pensions in Respect of Government Service), or any annuity derived by a resident of a Contracting State from sources within the other Contracting State may be taxed only in the first-mentioned Contracting State."
Does this mean that my traditional IRA distributions will be taxed only in India?
What about Roth IRA distributions? I know they will not be taxed in the USA. But will they be taxed in India as per the treaty? I was not able to identify in the treaty the clause that pertains to Roth IRA distributions.
I am debating between converting traditional to Roth, and leaving the traditional alone. But the decision will depend on how the money is taxed. If #1 is true, and Roth distributions are taxed again in India I'd rather leave the traditional IRA alone. If #1 is true, and Roth distributions are not taxed again in India then conversion might make sense. If #1 is false, I will consider conversion.