My silly finance question ! (new)

[GoingtoPune]

Desi and other experts,

Can you please help me to understand this?

I am on H1B and returning in 2010 (April). I have a spousal IRA - which is about 20K in value - in my wife's name, who is on H4 now. After our return, when I am NRA next year(2011), we plan to take distribution from this IRA during her RNOR period, paying the early withdrawal penalty. My question is

1. She should file the return in her name for this distribution? [I think, I will be filing as “Married nonresident alien”] If so, is her filing status is “Married nonresident alien” too?

Thanks for your response, in advance.

[Desi]

I am looking to save some taxes this year and wanted to know if I can do that by opening a IRA / Roth IRA Account?

ROTH IRA does not give any current tax savings.
Opening an IRA provides tax savings only if qualified. Whether you are qualified or not depends on your income and whether covered by a retirment plan at work. You are covered by retirement plan at work. For details whether you qualify check pub 590.

Considering that I am a GC and it would take another 4 years to get USC, which account should I open?

GC vs USC makes no difference and has no bearing on which account.

I am a potential R2I'er. I have heard Vanguard is a good place to open an IRA.

vanguard is a good place to open IRA for anyone R2I or not.

Should I be opening one in my wife's name as well in order to save some taxes? What are the pro's and cons of opening traditional IRA vs a Roth IRA?

Spousal IRA is advised if one is looking for tax shelter and if qualified. If spouse is not working, the spouse will be qualified. ROTH IRA gives no current savings and if in high tax bracket, then an IRA is a better bet.

[Desi]

Desi and other experts,

Can you please help me to understand this?

I am not an expert, but will try.

I am on H1B and returning in 2010 (April). I have a spousal IRA - which is about 20K in value - in my wife's name, who is on H4 now. After our return, when I am NRA next year(2011), we plan to take distribution from this IRA during her RNOR period, paying the early withdrawal penalty. My question is

1. She should file the return in her name for this distribution? [I think, I will be filing as ?Married nonresident alien?] If so, is her filing status is ?Married nonresident alien? too?

Thanks for your response, in advance.

Your filing status will be "other Married non-resident Alien", Your spoouse's status will be same "other married non-resident alien". Bot of you will file separate returns. There is no joint return for NRAs from India.

[r2iby2007]

Hello,

I bought Citigroup (ticker C) and in 2002 they spun off TPC.A and TPC.B. Between 2002 and now, the ticker became TRV for both TPC.A and TPC.B and I cannot find any press release about this or cost basis. I sold both Citigroup and Travelers in 2009
In spite of all my search in google, I cannot find, how tpc.a and tpc.b became TRV. Any of you faced this? How did you handle?

Thank You

SSPP

[sr912m]

Hi ,
I posted similar msg in other thread , but i think this is better place. What is the best way to take large amount of cash to India. We are R2I'ing in next few weeks and would like to take cash in $s , say TCs or Cashier's Check if possible and encash it when the $ is higher..Can anyone pls suggest ideas. Is it better to leave the money here in US accounts and write checks after R2i'ing..does anybody see any risks with that approach. Thanks in advance for your replies.

[Desi]

Hello,

I bought Citigroup (ticker C) and in 2002 they spun off TPC.A and TPC.B. Between 2002 and now, the ticker became TRV for both TPC.A and TPC.B and I cannot find any press release about this or cost basis. I sold both Citigroup and Travelers in 2009
In spite of all my search in google, I cannot find, how tpc.a and tpc.b became TRV. Any of you faced this? How did you handle?

Thank You

SSPP

Does the following link help you?

http://www.eurexchange.com/download/documents/circulars/cf0732002e.pdf

You can see the conversions if you have access to the monthly statement. Many brokerages provide years of back statements online.

[Desi]

Hi ,
I posted similar msg in other thread , but i think this is better place. What is the best way to take large amount of cash to India. We are R2I'ing in next few weeks and would like to take cash in $s , say TCs or Cashier's Check if possible and encash it when the $ is higher..Can anyone pls suggest ideas. Is it better to leave the money here in US accounts and write checks after R2i'ing..does anybody see any risks with that approach. Thanks in advance for your replies.

I have no personal experience but still will not hesitate in chiming in.

1. You should familiarize yourself with the posts in the following thread - Exit Tax for U.S. Expatriates to Become Law
2. Be aware that if you are taking with you $10K or more of currency + negotiable instruements such as TCs, Cashier's check, demand drafts etc, then you are required to report to customs on exit and file appropriate form.
3. If over $5K in usch instruments or currency, you are required to declare at Indian customs.
4. In both above cases, there is no customs duty on the money transport but reporting is a requirment.
5. By taking TCs. cash, etc, you lose the interest on the money for the duration you keep it that way.
6. By leaving money in your bank account in USA that is online accessible for transfers, you can transfer when you want.
7. Sign up with a couple of money to transfer agencies such as Money2India and SBI's money transfer.
8. Go talk to the Bank Manager or NRI relationship manager at 2 to 3 banks in India and tell them how much money you want to transfer, give them a check and attempt to negotiate rate with them. Check with a few banks.
9. In my experience, I have found Axis bank to provide good rates.
10. If you have NRE account, you can attempt to negotiate over phone and wire transfer the dollars.
11. Discuss the transfer method with the receiving bank also, since it is a large sum, they will be willing to work with you.

Hope the above helps and hopefully some other members will chime in as we do have many members who have R2ied and must have transferred large sums at one time.

[sr912m]

I have no personal experience but still will not hesitate in chiming in.

1. You should familiarize yourself with the posts in the following thread - Exit Tax for U.S. Expatriates to Become Law
2. Be aware that if you are taking with you $10K or more of currency + negotiable instruements such as TCs, Cashier's check, demand drafts etc, then you are required to report to customs on exit and file appropriate form.
3. If over $5K in usch instruments or currency, you are required to declare at Indian customs.
4. In both above cases, there is no customs duty on the money transport but reporting is a requirment.
5. By taking TCs. cash, etc, you lose the interest on the money for the duration you keep it that way.
6. By leaving money in your bank account in USA that is online accessible for transfers, you can transfer when you want.
7. Sign up with a couple of money to transfer agencies such as Money2India and SBI's money transfer.
8. Go talk to the Bank Manager or NRI relationship manager at 2 to 3 banks in India and tell them how much money you want to transfer, give them a check and attempt to negotiate rate with them. Check with a few banks.
9. In my experience, I have found Axis bank to provide good rates.
10. If you have NRE account, you can attempt to negotiate over phone and wire transfer the dollars.
11. Discuss the transfer method with the receiving bank also, since it is a large sum, they will be willing to work with you.

Hope the above helps and hopefully some other members will chime in as we do have many members who have R2ied and must have transferred large sums at one time.

Thanks for the reply. I do have an remit2India , SBI online transfer account. Was just wondering is it safe to leave large amounts here in US banks and transfer later on, as we wont be coming back to US and it may take a while to clear out all the money. If many people have done that already ,i think that may be best option. Can anybody else please chime in. thanks again.

[rsvpvr]

Can we contribute to Traditional IRA (not Roth IRA) on top of company sponsored 401K max amount($16500)?
I did some research on it by goggling. It seems that it is not possible. I appreciate if someone confirms my finding.
Thanks in advance!

[skkavi]

It depends based on your AGI (Aggregate Gross Income). This link will be a good one to check - http://www.smartmoney.com/personal-finance/retirement/an-ira-primer-7957/