2

How does India tax US after-tax retirement accounts such as the Roth IRA for a person who is a US non-resident for tax purposes starting age 59.5?

0

After you become resident Indian for tax purposes, you have 7 years to bring back your retirement savings. There is no tax applicable. After 7 years any such funds would be taxed.

3
  • Thank you. Is there no tax credit for after-tax retirement savings? What about credit for the foreign tax paid when distributions are taken from before-tax savings? Also, what are the tax rates if the money is not brought within 7 years? Jun 5 '20 at 15:28
  • The issue is with US taxes: "bringing back retirement savings" such as IRAs or 401(k) plan assets would require a withdrawal from those plans which, in general, are US-taxable events (even for Roth IRAs) as well as penalizable events for those under 59.5 years of age. Whether that money (less US tax paid?) can be put into a retirement account in India is a separate issue. Jun 6 '20 at 15:08
  • @Dilip Sarwate So what is the best course of action? Jun 8 '20 at 13:49

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.