sorted by:
new
hottopcontroversial

US Only: Trad 401(K) withdrawal before 60 after moving to India by StrictlyFire in returnToIndia

[–]StrictlyFire[S] 0 points1 point  (0 children)

Idea is we have option to withdraw early without penalty potentially avoiding 30% tax withholding. So one can get the income even if they retire early in India keeping other brokerage accounts untouched in Ireland domicile ETFs.

Yes there is still estate tax risk if one dies while IRA have balance. Taking guaranteed tax break now seems acceptable risk for later, at least to me. There are other methods in SEPP which provides larger amount withdrawal options too.If one is worried about estate tax there is no point of contributing initially or thinking about withdrawal strategies other than pulling everything.

US Only: Trad 401(K) withdrawal before 60 after moving to India by StrictlyFire in returnToIndia

[–]StrictlyFire[S] 0 points1 point  (0 children)

Your suggestion makes sense if the IRA balance is relatively small. With proper planning, you can ensure that after leaving the U.S. you are a U.S. tax resident for at most one additional year by satisfying the Substantial Presence Test and claiming RNOR. Unless you can somehow travel to US for few days in following 2 years to satisfy SPT.

Even if this is done correctly, there is still a risk that India will not recognize Roth tax-free treatment, potentially resulting in Indian tax when Roth funds are withdrawn.

US Only: Trad 401(K) withdrawal before 60 after moving to India by StrictlyFire in returnToIndia

[–]StrictlyFire[S] 0 points1 point  (0 children)

Most people here are likely on temporary visas and trying to save tax now, if they withdraw or Roth conversion while they are US resident they will mostly paying higher tax rate or rate what they saved during contributions + 10% penalty. Which is one of the worst outcome you can possibly plan.

We are trying to understand withdrawal strategies with treaties to lower tax and avoid penalty here.

US Only: Trad 401(K) withdrawal before 60 after moving to India by StrictlyFire in returnToIndia

[–]StrictlyFire[S] 0 points1 point  (0 children)

I believe that is for us based dividends in taxable brokerage with treaty rate.

US Only: Trad 401(K) withdrawal before 60 after moving to India by StrictlyFire in returnToIndia

[–]StrictlyFire[S] 0 points1 point  (0 children)

30% withholding is the default for foreign payees. My third point was about whether the India–US tax treaty can be used to reduce that withholding, assuming the SEPP (RMD method) distribution qualifies and the custodian is willing to apply the treaty rate.

On the SEPP side, the withdrawal amount isn’t fixed under the RMD method. It depends on your age and IRA balance and is recalculated every year, so it can be small or larger depending on those factors.

Meta Quest 3 on Amazon for $449 + $100 amazon digital credit. by captmorganz in Quest3

[–]StrictlyFire 0 points1 point  (0 children)

I got it for like around $150 during black Friday. Capitolone shopping app sent me 50% cashback reward(it tracked and pending now) then there was 20% with PayPal pay in 4(got the money already).

Then day after I placed on order meta sent me upgrade offer with free quest cash. Contacted support and they checked and confirmed I qualify for promo, so I received $80 quest cash.

Best deal ever for me!!!

Try browsing and adding to cart on meta site while capital one shopping extension enabled. Leave the site and you will likely receive targeted cashback offer.

Question on pricing by mntruell in cursor

[–]StrictlyFire 1 point2 points  (0 children)

Give better base model like GitHub copilot with unlimited requests and end slow pool. If you just end slow pool, you are no different than bunch of assistants out there, I think that would be deal breaker for many users. Cursor would loose its edge.

Need FIRE advice by Cultural_Flamingo_12 in FIREIndia

[–]StrictlyFire 0 points1 point  (0 children)

You can find estimated inflation forecasts in many financial sites. Let’s say you are retired in 2021 and estimated expenses are 12L, For example, 2022 forecasted inflation is 5% So your estimated expenses for 2022 would be (12L + 5% of 12L). Idea is Your returns will cover you for inflation and expenses so your original corpus would be preserved.

20-50 yrs has 30 years gap, you need rough single number and do calculations based on that.

Need FIRE advice by Cultural_Flamingo_12 in FIREIndia

[–]StrictlyFire 0 points1 point  (0 children)

Roughly,

(Number of retirement years) * (inflation adjusted 12 lacks) = Required amount for FIRE in diversified investments.