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?

1 Answer 1


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.

  • 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, 2020 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, 2020 at 15:08
  • @Dilip Sarwate So what is the best course of action? Jun 8, 2020 at 13:49

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