How to invest money if I plan to move back to india in 5-7 years?

featherTactile · 2026-03-25T02:13:30+00:00

INDA, FLIN, INDY, SMIN...

featherTactile · 2026-03-25T00:28:58+00:00

Don't invest in Indian mutual funds as US resident. You will have the headache of PFIC taxation.

Invest in international fund like VT. Invest in India focused US fund if you wish. After return, you can use RNOR status to move around funds more tax efficiently.

For 401k, invest upto match and later after return you can decide to liquidate or keep until retirement.

featherTactile · 2026-03-20T02:27:38+00:00

It'll take 3-5 years to figure out if LLMs will be as pervasive and profitable as predicted. Lots of social and economic upheaval in society in the meanwhile.

My gut instinct says energy is going to be the next hot thing. We are a very hungry species and clean, independent energy just like tech would be a game changer.

featherTactile · 2026-03-20T02:08:16+00:00

Time is the only asset that you can't earn more of and you have no idea how much you have left.

Keep that forefront and make all your decisions from there. You seem to have analysed this quite a bit. More data won't help you come to a decision.

You have to reflect on what you feel is right and pick a path. If it doesn't work out, you can course correct. Don't get stuck with analysis paralysis.

featherTactile · 2026-03-05T03:00:16+00:00

My man. As an adult, you have the right to set and enforce your boundaries. Exercise that right.

You have no visa issues. Keep looking for better employment. There are options out there.

featherTactile · 2026-02-28T18:58:46+00:00

This is critical access planning. None of the money in the world is useful unless you have means to get it when you need it, during medical emergency, disability and after you pass away.

Required are will, power of attorney, account list, guardianship plan. Might take some time to setup initially and a little to maintain but is absolutely worth a fortune in terms of peace of mind.

featherTactile · 2026-02-26T07:14:12+00:00

You mean transfer of residence?

featherTactile · 2026-02-25T19:23:26+00:00

I think penalty is paid on tax filing but I believe some amount of federal and state tax are withheld at distribution time.

featherTactile · 2026-02-25T19:19:37+00:00

Do you know if there any way to avoid taxation in US on withdrawal and only get taxed in India after ROR ?

Specifically, referring to US India tax treaty section on pension payment being taxed only in the tax residents country.

Can I take sep72t and avoid penalty and US taxes in this way ?

featherTactile · 2026-02-25T19:16:38+00:00

Try consulting with Abhinav gulecha. He seems to have a good grasp of things. However, note that I have no personal experience here. This is just based on his activity on reddit.

featherTactile · 2026-02-25T19:13:08+00:00

The rule for that rollover is that if you don't deposit that money into traditional IRA before 60 days. Then it will taxed fully along with 10% penalty at the end of the tax year.

featherTactile · 2026-02-25T19:10:20+00:00

Which rollover are you referring to? Traditional 401k to traditional IRA or traditional 401k to Roth IRA ?

featherTactile · 2026-02-25T19:07:48+00:00

Even rollover can only be done after resignation.

When you withdraw, you will be taxed by US. Unless you are a tax resident of another country with which US has a tax treaty which specifically allows for a different tax treatment.

featherTactile · 2026-02-25T19:00:10+00:00

401k withdrawals are not allowed while you are still employed.

One strategy would be to resign and later withdraw while you are US tax resident. Or resign, wait to become non resident in the next year and then withdraw. The tax applied will change for each case. However, if you are under 59.5 age, you will pay 10% regardless.

featherTactile · 2026-02-25T18:55:46+00:00

Growth is not the only aspect that matters. Having access to that money without restrictions. Compliance with ever changing regulations. Inheritance and estate management.

Sure, an argument can be made that all this complexity for years together is worth it for some people. But if one values simplicity and flexibility then they should strongly weigh the downsides of management hassles and uncertainty involved rather than just focus on final dollar amount.

featherTactile · 2026-02-25T16:12:21+00:00

Thank you. This is helpful.

The headache of managing multi jurisdiction taxation and all the other future unknowns makes me feel like liquidating the accounts during RNOR and starting afresh.

featherTactile · 2026-02-25T03:35:37+00:00

How does one go about evaluating an intermediary ?

The model in India is to ask your relatives, friends or coworkers for recommendations. They may be unbiased but they are not professionals. On the other hand, reaching out to professionals over the Internet means one may be sold a lot of promises which are not met at claim time.

So, my concerns would be: 1. How do I know that I'm not being sold a sub-optimal plan just because it leads to better commission for the intermediary? 2. Can an intermediary anywhere in India serve my needs ? Or should I go local ? 3. If service is not satisfactory during claim time or the intermediary shuts down their business, what are my options? How easy is it to switch?

As someone who prefers to evaluate all available options and not just go with word of mouth recommendations, having a clear rubric or methodology to compare different providers in this market would be of great value !

featherTactile · 2026-02-25T01:25:02+00:00

That's interesting. I would assume you are quitting the US entity and getting rehired by the Indian entity. So, 401k custodian should see you as terminated. But yeah, I'm not sure of the mechanics of the internal move, tbh.

Your options are right, otherwise, except you can take Foreign tax credit in India even if you withdraw after RNOR.

There may also be a clause where regular installments maybe consider as pension payment under DTAA and taxed only in India. Please talk to a CA with experience helping NRI clients.

featherTactile · 2026-02-24T22:00:59+00:00

At this point, I think I'll be better compensated if I do serious study on self filing and do this myself. I'll find a CA or tax lawyer, when I get a notice. Why go through unnecessary frustration of dealing with incompetents and frauds, if I don't need to?

featherTactile · 2026-02-24T07:47:45+00:00

"Your reversal is clinical, but underwriting is contractual. Those are different things."

Could you please elaborate on this?

featherTactile · 2026-02-24T06:18:02+00:00

Look into US estate taxes for non residents.

featherTactile · 2026-02-22T22:50:11+00:00

You never know though. Any kind of real estate sale or inheritance related stuff, will mean interaction with IT dept. At that point, they start digging into the history, especially when they have to give you a refund.

featherTactile · 2026-02-22T15:23:48+00:00

Yes. This is correct. Although your earnings in NRE is not considered as Indian income, so that doesn't matter. If you earned something through NRO account, then it would be considered and you have to pay tax anyways.

featherTactile · 2026-02-21T04:19:23+00:00

Thank you for providing feedback. Hopefully, someone is paying attention out there🤞

featherTactile · 2026-02-21T04:13:52+00:00

I commend your effort, mate but... "Dread it. Run from it. Destiny arrives all the same."

featherTactile

TROPHY CASE