All, as part my relocation package I am offered a) Tax assitance from a top 5 firm and b) legal assitance from a law firm (for visa, pio, OCI, USC relocation etc). I will be meeting both of them soon for discussions.
The help of this forum is indispensble for me in planning my move. I will be going thorugh finance, Tax and legal threads in next 2-3 days to get an understanding of the issues members faced and I will be asking some of them. But based on their experience if any of the veterans can give a quick list of issues I can takeup with the advisors, it will save me a lot of time.
Also,If any members of the community have any outstanding questions, I will be happy to takeup some of those with them and write the responses here (Please frame the questions in a generic way and not as individual situation).
Thanks,
PVRK
Offered Tax, Legal Help - Any Questions?
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bengal_tiger
- Posts: 131
- Joined: Thu Jun 07, 2007 9:51 pm
Offered Tax, Legal Help - Any Questions?
One of the issues you will face during your move back is: what to do with
your retirement money. You may have a 401k (with or without employer
contributions), a rollover IRA from any previous employers and any other
Roth IRAs you opened. You might want to do one of the following with
the money:
1) Withdraw it all after r2i and invest in India. Then, you should just
ask your tax consultant how the RNOR/ROR status applies to you
and how to make the best use of it.
2) If you want to hold your retirement funds in the US, be aware that
although the returns in it are tax deferred in the US, GOI will tax you
on accruals. You can find out what is the best way to avoid, or
reduce those taxes with careful planning that applies to your situation.
Please share your findings with us.
If you tell us a little bit more about yourself (e.g. citizenship, retirement
goals, kids education plans etc.) we might come up with more questions
relevant to your situation, whose answers are not easily found on this
forum (although if you search hard, you will pretty much find everything here!)
Good luck!
your retirement money. You may have a 401k (with or without employer
contributions), a rollover IRA from any previous employers and any other
Roth IRAs you opened. You might want to do one of the following with
the money:
1) Withdraw it all after r2i and invest in India. Then, you should just
ask your tax consultant how the RNOR/ROR status applies to you
and how to make the best use of it.
2) If you want to hold your retirement funds in the US, be aware that
although the returns in it are tax deferred in the US, GOI will tax you
on accruals. You can find out what is the best way to avoid, or
reduce those taxes with careful planning that applies to your situation.
Please share your findings with us.
If you tell us a little bit more about yourself (e.g. citizenship, retirement
goals, kids education plans etc.) we might come up with more questions
relevant to your situation, whose answers are not easily found on this
forum (although if you search hard, you will pretty much find everything here!)
Good luck!
Offered Tax, Legal Help - Any Questions?
Does GOI tax 401k's of all USC's who stay/work in India or only those who claim NRI status via PIO/OCI ?
Offered Tax, Legal Help - Any Questions?
How does the IT dept know about your global income?
Offered Tax, Legal Help - Any Questions?
bengal_tiger, Thanks for your pointers. I will keep the two points mentioned by you in mind when talking to them.
As for my stauts, Me and my wife recently obtanied USC . 2 kids are born here. All 3 of the left to India as soon as we got USC. I am applying for PIO here. Family will apply there. (ultimately we will get an OCI once settled in India).
As for goals, I am concerned mostly about investing proceeds from my house sale as I don't have a lot in 401(k) due to jobs in startups.
a) Whether to invest here or in India
b) if Invest in India, whether I can bring them back after let's say 10 years for kids education here
c)I have very little knowledge about financial markets and considering current interest rates, i am tempted to put money in CD's or Money market.
d) I am thinking that real estate in India is in overhyped speculation mode and don't like spending 70 lakhs for a decent apartment
comments?
As for my stauts, Me and my wife recently obtanied USC . 2 kids are born here. All 3 of the left to India as soon as we got USC. I am applying for PIO here. Family will apply there. (ultimately we will get an OCI once settled in India).
As for goals, I am concerned mostly about investing proceeds from my house sale as I don't have a lot in 401(k) due to jobs in startups.
a) Whether to invest here or in India
b) if Invest in India, whether I can bring them back after let's say 10 years for kids education here
c)I have very little knowledge about financial markets and considering current interest rates, i am tempted to put money in CD's or Money market.
d) I am thinking that real estate in India is in overhyped speculation mode and don't like spending 70 lakhs for a decent apartment
comments?
Offered Tax, Legal Help - Any Questions?
US citizens cannot invest in Indian MFs due to PFIC rules. Investing in individual stocks is risky for individuals. In that situation what does a ROR US citizen do if he wants to participate in Indian market and does not want to buy US MFs such as MINDX. You can ask this question to the tax consultant. Also, I know a lot of ROR US citizens that still invest in Indian MFs. Will they be in trouble some day? Are there precedences?